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The 2021 Bitcoin Conference in Miami has everyone glued to it as investors, senators and lawmakers speak about the importance of distributed ledger technology and its various uses. The blockchain network has functioned in an unregulated manner since its inception. It has become a breeding ground for many to carry out illicit activities.
Cynthia Lummis, US Senator from Wyoming, highlighted that her State ranks among the most crypto-friendly in the whole country. She expects cryptocurrency to change the financial ecosystem along with the underbanked. US Congressman, Warren Davidson, exclaimed that the masses need to be educated before venturing out in cryptocurrencies.
Open source technology for all
A distributed public ledger has paved the way for masses to keep a track of all the transactions taking place on the blockchain network. Cynthia states that the technology is disruptive and will help in creating a better future for the underbanked, specially.
The technology is inherently decentralised and highly transparent. The Congressman makes a point here that some form of privacy needs to be maintained for smooth functioning. As a whole, the network is run by several validators across the globe at the end of the day.
There need to be protocols and modifications that justify the functioning of the networks. It eliminates the requirement for a third party and has put the existence of banks under a cloud.
A point has been judicially raised that investors and validators need to work with banks to keep their business alive as well. They are the very foundation that has made distributed ledger an efficient technology. The decentralised nature ropes in proper functioning and carrying out tasks efficiently.
Regulations to protect all parties involved
The Congressman gave the example of the Telecommunications Act of 1996 which regulated the industry for the wellbeing of the society. In a similar fashion, rules and policies need to be in place before the cryptocurrency market is exploited to a vast extent.
The Senator plans to educate the staff present in her cabinet as it is of prime importance. Once educated, members of the government will be at a better pedestal to spread awareness about cryptocurrencies as an asset class.
She was astonished when the IRS came up with a rule that investors need to disclose crypto transactions above $10,000. Such regulations will lead to citizens hiding further information rather than sharing it. Providing users’ and transaction information should be the prime focus of the government.
Warren stressed on the fact that certain boundaries need to be built for consumer protection but harsh code of conduct and norms will be detrimental in the future. Moreover, new entrants will be skeptical before taking the plunge where there is already a bloodbath underway.
Defend freedom of Americans
With spike regulations and burgeoning new investors, a sense of fear will creep in leading to millions being washed away. The Senator stated that the freedom of every American and crypto investor for that matter should be protected to safeguard the global ecosystem.
The crypto universe is bound to rise within the next decade where user privacy and regulations should be closely watched. The evolution of the payments system has started with cryptocurrencies with continuous innovations leading to better financial products for everyone.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.