Cryptocurrency and worldwide politics must find some shared basis of coexistence
An outlook on Politics & Cryptocurrency
PUBLICAE´s Weekly Politicoin Deliberation
Cryptocurrency and worldwide politics must find some shared basis coexistence. Regulators and even central banks are increasingly expected to integrate digital assets into the global economy as the benefits of security and privacy outweigh the risks of market decentralization. Public officials should take these matters into account as central authorities become increasingly aware of cryptocurrency and its wide role in affecting long term policy development.
Cryptocurrency business owners and technology adopters are often required to purchase and sell crypto assets within a highly regulated legal framework. However, politicians appear to move very slow in regard to adoption of blockchain technology with the aim of improving governance effectiveness when faced with a cumbersome outdated bureaucracy which is struggling with the digital divide and unable to meet the exponential need for digitization of public services.
More G20 countries are now showing their willingness, to support a common global regulation for cryptocurrencies and its relation to political governance. Nevertheless, many politicians are confounded by crypto market activities and consider only the risks that are present. Particularly, the alarm bells went off in the US following the announcement of the Libra project by Facebook.
While most nations currently lack transparent cryptocurrency legislation, some decision makers are not afraid to express their position on digital assets and virtual money. Members of the Swedish, British, US, Swiss, and Japanese parliament have endorsed crypto and blockchain adoption and even run pilot projects for advisory policy incentives as public blockchain voting. Even Russia is calling for legislatures to stop the slowing down of the growth of blockchain technologies.
Sadly, politics and cryptocurrencies are two sides of the same coin which will not be able to be united unilaterally. Many politicians are upset and criticize Bitcoin publicly, especially in the US the bastion of world financial markets. The impact of negative press coverage on the crypto market, is influencing the masses which really need an honest and clear debate on the many benefits that blockchain technology have which would improve society as a whole.
Why elected officials disprove of cryptocurrency
Most nations fear cryptocurrencies for all the wrong reasons, mostly their ignorance is due their inert fear, that decentralization and deregulation pose an ostacle to their fiscal and monetary policies. As fiat currencies are the cornerstone of a monetary policy of any country and have a major impact on the domestic economy, any reforms or disruption to these factors are met with political opposition.
The current economic structures, allows and encourages governments and central banks to regulate the amount of money in their domestic economies. Policy makers can boost employment or investment, stimulate exports or avoid inflation, these regulatory market tools serve as the basis of economic theory developed by Adam Smith and John Maynard Keynes.
Virtual Asset FATF Standards
Politics and cryptocurrency software companies have to work together for the transformative aspect of the blockchain technologies. People need transparent and clear legislation that allows them to benefit from cryptocurrency and restrict unwanted usage and protect the crypto-market investors. It is very difficult because legislation involves the understanding of the concepts behind cryptocurrencies and the learning curve is seen to be quite steep for novice adopters.
FATF (Fatft-gafi.org) combats threats such as terrorist financing and money laundering throughout the world. The organization has drawn up a number of recommendations for the use of cryptocurrencies. This could become the international standard for adoption of cryptocurrency if the G20 countries support the FATF proposal.
But not every country seems to be willingly to have an official cryptocurrency role just yet. For example, many EU nations are troubled about the implications for tax evasion and financial criminal activities that may follow in light of massive crypto adoption among their populations.
PUBLICAE has the long-term goal of building the bridge between politics and cryptocurrencies with the Politicoin utility token. Our intention is to advance the adoption of blockchain technologies as we build a user-friendly platform for political advertisement that meets the regional regulations off ethical Ad-tech implementation concurrent with a regulatory approved party funding initiative. The road ahead is an uphill battle, a fight we are willing to take for the betterment of the world as a whole.