- The biggest advantage is again limited by strict rules and regulations of a number of countries which enjoy a good control over the digital world with the weapons called ‘law’.
- The shining example is the European Union, which has ensured systematic rules for greater cooperation in the entire economy.
- Digital currencies are the next most important subject to be addressed by the EU.
The most special part that makes a digital currency give a scorching aura is it’s a ‘borderless’ tag. As most of the cryptocurrencies are not controlled by any individual party, it is neither time-bound nor is affected by a holiday barrier and the most striking feature is its swift flow across borders without any restrictions.
Unfortunately, the biggest advantage is again limited by strict rules and regulations of a number of countries which enjoy a good control over the digital world with the weapons called ‘law’. Countries like China follow this strategy outlawing a wide range of cryptocurrencies.
On the other side, there are countries like Japan where a well planned comprehensive system allows the swift flow of cryptocurrencies.
Now the masses have started embracing the crypto world and the realization that the digital economy has become the backbone of the economic growth has again occupied innumerable minds. In such an era a pressure to stamp any digital growth which of course includes the cryptocurrencies might not be very healthy for the economy.
A systematic and combined approach is always appreciated which neither makes the system too severe to work in nor is too soft to allow economical slowdown.
The shining example is the European Union, which has ensured systematic rules for greater cooperation in the entire economy. Guiding equities, fixed income and derivatives have become the key area where it’s financial institutions have taken the lead.
Digital currencies are the next most important subject to be addressed by the EU. The Financial Conduct Authority in the UK and the European Banking Authority have together tied up to ensure security demands.
In July FCA shared its opinion on the digital currency as
“a small, complex and evolving market covering a broad range of activities.”
The statement highlights that the crypto asset is considered a productive asset, however, the document cleared the difference between the security tokens and e-money tokens that are included within the existing rule and the tokens which are not regulated.
Brexit has never distracted the EU from the aim of bringing things together and unifying it. Valdis Dombrovskis, EU financial service commissioner said earlier this month
“Europe needs a common approach to crypto-assets such as Libra. I intend to propose new legislation on this”
The statement was a powerful remark giving a special magnitude to the crypto assets in Europe.
Proper rules and regulations without creating partitions in the countries just for the sake of a ‘defensive competition’ are likely to bring more loss than the gain to any economy within that border.
It is always unification with a systematic framework and regulation that helps an economy to forge ahead.