February saw significant events for cryptocurrencies. She contributed to the Winter Olympics for the year 2022 In the wide spread of the official cryptocurrency “Digital Yuan” In China. Last week, India announced a plan to issue a version of the rupee for Blockchain administered by the Central Bank in 2023.
as reported Verdict VerdictRecently, India is setting up a central bank for cryptocurrency CBDC. According to a survey conducted by the Bank for International Settlements for 2020that 60% From central banks are experimenting with central bank currencies. Also, Sweden, Estonia, the Bahamas and Nigeria are conducting a study on cryptocurrencies.
It was stated in a systematic report issued by the Center Global Data GlobalData For studies:
“There is a growing interest by many governments in developing their own digital currency, a decision resulting from declining cash and the need to create a transparent currency, as well as the need to create an alternative to cryptocurrencies and stablecoins.”
The blame has been directed at El Salvador by the International Monetary Fund IMF To be used coin Bitcoin encrypted. On the other hand, the Chinese digital yuan had more than 260 1 million users in a few weeks of scaling up the beta in the run-up to the Winter Olympics, with transactions worth 87.5 billion yuan.
What does the future of digital currencies look like, whether they are cryptocurrency-based or otherwise? I discussed Verdict With Lisette Killer Lizette Kellerpartner in “RSM” RSM It is an accounting firm with project supervisory capacity Bitcoin in El Salvador.
He also gave their opinions:
Chris Caruana Chris Caruanavice president “Anti-Money Laundering Authority” AML In the financial risk management and fraud prevention platform vidzay Feedzai.
and CEO of Trading Platform Group SkillingMichael Kamerman Michael Kamerman.
CEO and Founder of Cryptocurrency Investment Platform change ChangeKristen Kangrou Kristjan Kangro.
Through separate interviews, ferdict Views onHow crypto laws apply and the potential future of cryptocurrency and CBDCs.
Giacomo Lee Giacomo LeeWhat is your experience with digital currencies?
Lisette Killer: Although the adoption of Bitcoin In El Salvador it was led by the public sector, it has taken a branch”RSM“A proactive stance, with one of our partners serving as a member of the Salvadoran Supervisory Board.
The primary objective of the Board of Directors, in this project, was to establish accounting standards when it comes to recording transactions made using cryptocurrency, in cooperation with the International Federation of Accountants impostor (IFAC). In addition, it was the role ofRSM“It is to inform our clients in the country and develop our advisory capabilities to help them navigate the changes.
Christian Kangro: Regulators here in Estonia have not shied away from inviting cryptocurrency companies, and experts while developing legislation. and in changeWe welcomed the opportunity to work with the organizers; Drafting amendments to financial legislation that tightened licensing rules and ultimately provided more protection for clients.
Read also: In Estonia, there will be no ban on cryptocurrencies, according to the Minister of Finance!
What kind of background does the concerned nation have in cryptocurrency?
Killer: Cryptocurrency was adopted in El Salvador too quickly and there was not enough time for future planning. The head of state, Nayib Bukele, announced Nayib Bukelein June 2021 El Salvador will adopt a currency Bitcoin As legal currency, the People’s Assembly approved the law after only four days.
While the government deposited the equivalent of 30 $1 into a digital wallet for every Salvadoran citizen, pumping an estimated 30-40 Millions of dollars in local economies.
It took a huge effort from the government to create the financial infrastructure required for all the residents of El Salvador.
kangaroo: enjoy Estonia With a reputation as one of the world’s leading countries in terms of exploring and implementing cryptocurrency legislation andBlockchain.
So far, it has been one of my biggest accomplishments Estonia It is to ensure a balance between allowing innovation to thrive and also providing safety and security for ordinary people’s money in the field.
Read also: In Estonia: The Ministry of Finance says the country will not ban cryptocurrencies!
What are the challenges when introducing digital currencies into a country?
KillerThe challenge comes from the prevailing expectations that remittances to El Salvador will be made in a currency Bitcoin in a year 2022. Although this is a positive step in terms of economic development, remittances constitute 20% of the gross domestic product.
We rely heavily on data to understand the landscape in which we operate. Without intermediaries, we are missing a major source of reliable data.
Kangaroo: Regulating cutting edge technology is not easy. Compared to the cryptocurrency boom in a year 2021, we see that regulators are considering stricter rules in the industry. It is important to keep an attitude Estonia Progressive towards cryptocurrency stands and is not influenced by other countries that may take a hard line.
Chris CaruanaIn a world where private citizens are increasingly suspicious of their governments, central cryptocurrency banks are collecting CBDC CBDCs A huge amount of personal financial data about an individual. And let’s not forget that one of the basic principles of Blockchain blockchain Cryptocurrency is decentralized. This is incompatible with decentralization.
The focus is likely to be on organizational design at this point as additional banks and agencies have been created to facilitate information sharing with central banks.
Read also: The International Monetary Fund urges El Salvador to cancel the adoption of “Bitcoin” as an official currency
Why will the digital yuan be issued in China?
Keeler: The digital yuan has been around for years, and with this comes a very thoughtful regulatory framework and monetary policy based on continuous analysis. This logical approach, led by empirical tests, means “That adoption has every chance of success.
Caruana: First, the People’s Bank of China focuses PBOC Mainly on adoption in the payments sector, which is a huge business in China. Second, when there is such a hard push, the desire of the People’s Bank of China and the Chinese government to achieve their goals is not about whether but when.
Read also: China to display digital yuan at Winter Olympics
Why and where are cryptocurrencies taken seriously?
Keeler: For the socialist countries of the Latin American continent, the currency of Bitcoin Attractive because it reduces governments’ reliance on local currencies, which are usually weak.
and consider Bitcoin Synonymous with foreign investment for many of these countries, which increases their attractiveness. The recent supply chain crisis also highlighted the most attractive features of the currency Bitcoinwhich is its speed.
And if these problems persist in a year 2022We are likely to see more government interest in cryptocurrencies. The next challenge will be to fill the gaps that the currency creates, for example in enabling it to erode.”Tax base and cheap labour.
Michael Kamerman: Financially stable developing countries have a great appetite for cryptocurrencies, especially in countries where barriers to accessing traditional financial products remain significant.Cryptocurrency hype“It is common practice.
Over the past two years, according to data Chainalysis led Vietnam The road to cryptocurrency adoption worldwide. And in Europe, strengthened Ukraine Trade cryptocurrency due to its high popularity.
Also Read: New Crypto Platform Launched in Vietnam
Are citizens prepared in any way for cryptocurrency?
KillerIndividuals and businesses adapt very quickly, even in small and remote towns. The adoption of cryptocurrency in El Salvador was an important step for financial inclusion in a country in which 70% of the population have limited or no access to regular financial services.
There are more people who own a currency Bitcoin In El Salvador there are more bank account holders. And in a year 2022there could be multiple benefits if the government focused on expanding universal access to financial technology.
The government of El Salvador is placing all of its bets on a currency Bitcoin As a vehicle for financial inclusion and prosperity. And as the foundation of Bitcoin CityThe new settlement also signifies the great interest in the future that cryptocurrencies are driving.
Read also: The real reason El Salvador adopted Bitcoin
What are your expectations for cryptocurrency in 2022?
Killer: It is not used by the majority of ordinary Salvadorans Bitcoin To carry out daily transactions. Correcting this should be the government’s priority for a year 2022Because a better understanding of the currency will enhance the legality of the currency among the population.
Transparency, education and participation will ensure that even the most remote parts of society are brought into a new digital landscape. While the government may encourage the adoption of Bitcoin In the context of the consumer, franchises for businesses will be the next step for a year 2022.
The most prominent effect on customers is price volatility Bitcoin. Meanwhile, the government and regulators should develop their plans to close tax loopholes, and focus on cryptocurrencies. Only then will companies feel safe.
Read also: Experts’ predictions about the future of cryptocurrencies until the end of this year
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