Everybody asks one question.
The big financial players in the online FinTech community debate around a single subject – encrypted digital money, i.e., cryptocurrency. People are more curious about the crypto market than the stock market. The discussion revolves around Bitcoin, Ethereum, Bitcoin Cash, and other moderately known cryptocurrencies.
The smaller players of the planet, the common mass, who are the common voters of respective nations, earn less but they dwell with all hope on the positive thought - Cryptocurrency is the future.
Political leaders make huge promises to their voters. They collect votes by building castles of a bright future. After winning the election, they forget the citizens and don't concentrate on the developments. Government administrators worldwide try to impose more taxes on citizens' income.
Governments aim to crack down on cryptocurrencies
All governments around the globe are interested to track cryptocurrency transactions because they suspect (and are probably sure) that tracking cryptocurrencies would fetch them huge taxes in the real world.
But, cryptocurrency technology is inherently decentralized. Although most cryptocurrency exchanges are centralized and act as custodial fiat banks, some decentralized exchanges exist with self-custodial cryptocurrency wallets.
Thus, governments are trying to propose new laws to control cryptocurrencies. They have been trying to file legal suits against different cryptocurrency startup companies, regulate the centralized cryptocurrency exchanges with stringent KYC rules, and ban anonymous cryptocurrency transactions.
If the governments are able to crack and track the anonymous cryptocurrency transactions, the financial regulatory boards will be able to control the entire cryptocurrency ecosystem.
The government finance regulatory bodies are rigorously trying to unlock the encrypted digital money aka cryptocurrencies and get hold of all financial resources of the world.
Governmental tyranny against cryptocurrencies is not new
Legal suits against Ripple and Odysee by the Security and Exchange Commission (SEC) have been initiated under the Securities Act of 1933. Ripple's cryptocurrency XRP has already made an entry as a tool for cross-border payments. Odysee has made a mark as a new video content platform using the LBRY blockchain protocol and LBRY Credit (LBC) coin.
The US SEC considers both XRP and LBRY as securities and have been trying to stop the operations of the two crypto startups. Odysee and Ripple have already spent huge money in legal proceedings which they could have invested in further technology developments.
The world has already experienced tyrannical activities in Canada in the recent past. The Canadian government got a court injunction to freeze Bitcoin funds and addresses in connection to freedom rallies by the truckers in protest of lockdowns and vaccine mandates.
Governments worldwide are busy formulating new cyber laws to control cryptocurrencies. The financial regulatory boards are imposing stricter KYC rules to make all centralized cryptocurrency exchanges under legal chains. They are installing new crypto tax acts to deduct direct taxes from citizens' cryptocurrency earnings.
Don't forget the bullies Bitcoin Cash faces in crypto exchanges!
How can we ignore the bullies Bitcoin Cash has been facing from the big cryptocurrencies? Stopping deposits/payouts on/from Bitcoin Cash (BCH) is nothing but censorship. How can then we differentiate between the tyrannic governments and the big cryptocurrencies?
Can we rule out any secret ally between the so-called privacy-respecting top cryptocurrency founders and the administrators of the financial regulators of the big governments?
The current time is pointing towards a red flag (warning) in the entire domain of the fintech world. The national banks of governments are quickly evolving with their own centralized digital coins that they term national cryptocurrencies. These digital currencies will have encryption secrets to the users but are centralized to the respective government backs. I may call these coins quasi-cryptocurrencies.
Can we rule out any technological and business cooperation between the top cryptocurrencies and the government banks? The big cryptocurrencies may utilize these unprecedented governmental tyrannies to kill all their competitor cryptocurrencies! We don't know what may happen in the near future!
Cryptocurrency is encrypted digital money that attracted all stakeholders of the planet – the ruling governments, big tech corporations, super-rich billionaires, affluent elite class, fintech companies, and the common voters.
The government bodies anticipate huge gains from controlling cryptocurrencies. The financial regulatory bodies try to formulate new cyber and tax laws to track citizens' cryptocurrency assets, thereby earning huge taxes.
The cryptocurrency startup founders, their developers, coders, and legal advisers will try to improve the technology and defend the legal attacks.
The future of finance will definitely be a completely different ball game.
There would be drastic development of new decentralized technologies.
There would be new tax laws and security acts from the regulatory bodies.
All stakeholders might also come to a mutual understanding and cooperation.
The cryptosystems might have to adopt quasi-centralized protocols governed by the national governments.
The cryptocurrency domain is probably passing through the toughest testing times since the journey was initiated by Bitcoin about ten years ago. The challenges may turn out to be tougher for the smaller cryptocurrencies.
There no doubt that cryptocurrencies will impact the lives of almost everyone in the planet, including the members of the ruling governments, irrespective of nationality, language, ethnicity, religion, and political beliefs.
Due to the pressure of the legal suits by the US SEC, Odysee and its parent system LBRY have already bent from their decentralized stand and have started to control its users with centralized platform features, such as censoring, asking for KYC, taking payments on dollars with credit cards, etc.
I am from Science, Technology, Engineering, and Mathematics (STEM). I have also added "Arts" and "Fine Art" to my interests and made my interests STEAM - Science, Technology, Engineering, Arts, and Mathematics.
I develop solutions for password and cybersecurity relevant to cryptocurrencies, blockchain, and other block-less distributed ledgers.
I hope the entire blogging community will strive here and elsewhere.
It was originally posted on read.cash.
Cheers! Debesh Choudhury
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April 08, 2022.