Cryptocurrency has helped accelerate nations around the world to move toward digital currency. Reactions to this new type of transaction, however, have been mixed from government perspectives. While Europe has been a big supporter of cryptocurrencies, the U.S. government has been less enthusiastic without much intervention. Here’s how this digital currency is viewed by certain parts of the world.
Regulations Surrounding Cryptocurrencies
The United States has yet to introduce legislation that would regulate cryptocurrencies, but several state bills are underway related to record-keeping. The European Union (EU), on the other hand, began creating laws shaping the use of cryptocurrencies back in the financial crash of 2008. These laws, rather than meant to restrict usage, were designed to nurture the growth of blockchain technology. The EU’s Parliament is currently designing a decentralized ledger for its own use.
Switzerland, one of the few European countries outside the EU, allows cryptocurrency without much regulation, similar to the EU. The development of blockchain technology in Switzerland is overseen by community organizations such as the non-profit Crypto Valley Association. Swiss public transportation systems now accept bitcoin for payment of fees. Bitcoin is also used for regular transactions in Germany.
Most Asian countries have approached cryptocurrencies with caution. It’s illegal in Bangladesh, Nepal, and Kyrgyzstan, while China has moved from being an early adopter to a cautious regulator. In the past year, China has enacted several restrictions on bitcoin trading to reduce the chances of capital leaving the country. Most countries, however, have yet to regulate blockchain technology or cryptocurrencies.
Acceptance of Digital Transactions
Digital transactions are increasing every year, which is helping pave the way for cryptocurrencies becoming part of new norms. Japan has particularly embraced this emerging digital payment system, perhaps more than any other country. Another nation that’s embracing blockchain is Australia, which hasn’t passed legislation yet and treats bitcoin like cash. Three successful Initial Coin Offerings (ICOs) have helped cast cryptocurrencies in a positive light. As the market value of cryptocurrencies propels toward hundreds of billions of dollars, several governments are awaiting quietly to see where theories of decentralization lead.
Cryptocurrencies are gradually being adopted by countries around the world without much government intervention except in a few places. It’s fairly clear that digital transactions are here to stay and that the blockchain offers many benefits to individuals who either trade cryptocurrencies or use them to make online purchases.