Cryptocurrencies are becoming increasingly popular and it is expected that people’s interest in crypto will continue to grow. A cryptocurrency is a virtual currency and is a decentralized and an encrypted medium of exchange. (Forbes, n.d.). A cryptocurrency, unlike the US dollar or the Euro, is distributed across a large number of computers and therefore, has no central authority that controls its value. Because of their decentralized structure, they can exist independently of governments and central authorities. The topic is not only popular among investors, but reaches a broad audience in which even teenagers are starting to become really drawn to the crypto industry. The industry has faced some major highs, accompanied with some tremendous drops. However, it is still up to debate how to develop the most effective framework of laws and guidelines that will make cryptocurrency safer for investors and more resistant against cybercriminals (NextAdvisor, n.d.).
In general, there are three possibilities to tackle this question. First, policymakers could just simply ignore it and do nothing. It is plausible to assume that it is not really in policymakers and central banks their interest as, currently, cryptocurrencies are not really a threat to money. It is not reasonable that we will switch from the dollar or euro to a cryptocurrency, entirely. Second, we could just outlaw cryptocurrencies. However, this scenario would not make sense as authorities would only take this kind of action if they think that cryptocurrencies form a large threat for the entire economic system, which is not the case. Finally, the most logical and safe option would be regulation. As cryptocurrencies do not form a real threat, the only concern that authorities have for the moment is taxation. This is because of the fact that authorities can not find out how much money an individual has. It is expected that future regulations will focus on enhancing the transparency of cryptocurrencies so that it would be possible to track and tax money stored away by individuals (Gis, n.d.).
Forbes n.d. “What Is Cryptocurrency And How Does It Work?” Available at: https://www.forbes.com/advisor/in/investing/cryptocurrency/what-is-cryptocurrency-and-how-does-it-work/ Accessed on: 14 October, 2022.
Gis n.d. “The future of cryptocurrencies” Available at: https://www.gisreportsonline.com/r/cryptocurrency-future-scenarios/ Accessed on: 14 October, 2022.
NextAdvisor n.d. “The Future of Cryptocurrency: 8 Experts Share Predictions for the Second Half of 2022″ Available at: https://time.com/nextadvisor/investing/cryptocurrency/future-of-cryptocurrency/ Accessed on: 14 October, 2022
