The Global Order and Cryptocurrencies
It’s the week’s news round-up and we are coming back to report the latest development from the world of cryptocurrencies, blockchain and bickering lawmakers. Uncle Sam has had a few ideas about what the future of regulated assets could look like. We take a look at the State of Ohio, the United States.
Ohio to Turn Itself into Hotbed for Cryptocurrencies
And so, it’s the State of Ohio that is now looking to make a splash in the world of cryptocurrencies. A recent press conference has revealed that quite a few lawmakers are rather prepared to embrace blockchain and cryptocurrencies and give a significant leg-up to the industry at home.
And this is not a wanton move. In fact, the measures are well-thought-out and they involve a number of accomplished academics, lawmakers and figures from business who have a genuine and open interest in the segments.
According to Ohio House of Representatives Speaker Ryan Smith business has right to access a world-changing innovation, in his own words, which will help everyone gain a firmer purchase in the ever-changing economy. Slashing costs, reducing risk, and boosting productivity are the age-old tenets of any successful business. Only this time, Ohio wants to make all of these possible.
Is This Feasible?
Smith has said many things about the benefits of innovation and blockchain in particular. He didn’t speak about any particular issues that may occur further down the road, but he definitely made a point of the benefits that government & business stand to gain from endorsing cutting-edge solutions.
Ohio State University’s Professor Hesham El Gamal, chairman of the Department of Electrical and Computer Engineering, has said that it’s paramount for the state to find way and retain talent in the state as the future of the industry may be weighted down by regulatory squabbles, but nobody really knows if it won’t pen out to be useful and have a crop of blockchain specialists in future.
Judging by the interest in the segment and Ohio’s readiness to be at the helm of this reform, things are looking up for aficionados.
CFTC Next on the Menu
Now comes the turn of the U.S> Commodities Futures Trading Commission (CFTC) which has managed to just recently permanently ban a New York-based firm known as CabbageTech Corp. As the company was embroiled in the trade and propagation of cryptocurrencies.
More specifically, the ruling of the CFTC lambasted the operations of CabbageTech Corp as “bold & vicious fraud.” CabbageTech, though hasn’t been particularly silent about the issue with Patrick McDonnell, the promoted of the company, arguing that the CFTC doesn’t have the authority to make such rulings. But apparently, McDonnell has been proven wrong.
However, CFTC’s remit stretches to where Bitcoin frauds are concerned. With this in mind, the company has been luring in investors from various states to shed cash while getting nothing in return. McDonnell is also a much-cited name in the CFTC as he has been involved in a series of cases.
Iran, Skirting the Sanctions
The world has been quite to rebuke cryptocurrencies as rogue assets. This could indeed be a point. Take for example North Korea which has been suspected of hacking South Korean and Japanese exchanges to finance its regime.
Of course, some speculate that North Korea has had quite a bit of help from Russia or China, although such allegations have never been confirmed, though suspicion grows. Venezuela’s President, having brought his country to the brink of collapse, now enjoys the benefits of a newly-minted crypto national legacy.
And by the looks of it, it seems that Iran is also preparing to launch into the world of cryptocurrencies. According to local media, President Hassan Rouhani has handed down instructions to develop a cryptocurrency that will help the country skirt America-led sanctions that have been hurting the economy badly, especially after U.S. President Donald Trump stepped into office.
Mr. Trump has been quite the buffoon if we should speak the truth. His constant remarks and attacks on a nuclear-empowered regime have been imprudent to say the least. Now that Iran has been able to see that the U.S. is not going to be their friends in a hurry, the country is pushing with its own crypto assets. And all of it is spearheaded by the Central Bank of Iran.
A Geopolitical Danger
Politics are important when it comes to managing cryptocurrencies. Bringing together an international order where crypto assets could be overseen is not easy and it requires an exceptional level of cooperation, which can be secured only by a united front of nations. However, with Russia, China, and the U.S. pushing in their own directions and Europe caught in the middle of its own surge in nationalism, it’s difficult to think about crypto currencies.
And yet, everyone should be. If there is an alternative mode of financing countries, this should be well-documented. Otherwise, some countries could be left out of the equation bringing disruption for everyone.
Not to mention that when countries are opposed financially, a repeat of the hacker attacks will become painfully abundant. And it’s not the ones that have been left out to blame either. Cryptocurrencies may be the preserve of Asia, but the West should really try to bring all bickering parties together lest a dire financial lockdown ensues.
China is on the verge of becoming the most technologically-advanced country and given the country’s history, it’s not likely that China will be the unifying force in the world.
Lastly, it’s important to highlight that cryptocurrencies may not exist independently of one another. If there are many currencies to begin with, then it would be pointless to tout speeds of transaction as a key factor as conversions will take a lot of time.
Not to mention that when dealing with difficult protocols and tech, exchanges will have to invest perhaps even more to be able to track all transactions and make sure they are genuine. Even though people may be saying that blockchain will make financial transactions automatic, until a sure-fire system is introduced, manual oversight will be necessary.