In the mist of a crypto draw down there are recent positive signs that globally countries are falling in favor for adoption and use of cryptocurrency. This maybe the next big hurdle for crypto to gain evaluation. The acceptance of its value and use as a currency by governments around the world. If it comes to fruitation where countries allow cryto use it will likely potentially be the next big leg up on its evaluations.
China Leaning In Favor of Cryptocurrency
China earlier came out with news that the government is loosing its aggressive stance toward bitcoin and cryptocurrency.
China was once one of the world’s largest buyers of bitcoin.
But in 2017, China banned so-called initial coin offerings (ICOs), a way to raise money for crypto companies by issuing digital tokens. That same year, authorities shut down local cryptocurrency exchanges. The moves were prompted by concerns about financial stability.
As investment alternatives, “many countries, including China, are still looking into it and thinking about what kind of regulatory requirements. Maybe minimal, but we need to have some kind of regulatory requirement to prevent ... the speculation of such assets to create any serious financial stability risks,” Li said.
From the article it appears China is willing to allow cryptocurrency to operate within its country as long as a form of regulations and rules are in place. This is a "progressive" take from the country's previous stance of banning crypto exchanges and purchases of BTC.
The country is also pushing ahead with its own digital currency and there are rumors that the government plans to introduce a digital currency of some sort for the use of the 2022 Bejing Winter Olympics.
Many currency analysts are in belief if China is able to successfully create a government digital currency it will make renminbi in higher demand internationally. Some even think this may allow China to have an additional method to challenge the US's dollar as a reserve currency. The easier access to renminbi and its use makes for more convenience and ease to the public.
For the upcoming Beijing Winter Olympics, we were trying to make e-CNY available not only to domestic users, but also to international athletes and like visitors. - Li Said.
Surname Li in both these articles is in reference of Li Bo who is vice chairman of China's Central Bank, equivalent to a FED member of the US Federal Reserve. With his spoken dialect it should be clear to the world that China is leaning pro cryptocurrency today more than ever.
Russia Also Leaning Toward Cryptocurrencies
In the beginning of 2021 Putin signed into a law making the cryptocurrency use for a currency illegal. In addition there were strict restrictions setup where trading cyrpto between countries in and out of Russia being illegal.
However as recent as of last week Russia's Central Bank has come out with plans and a basic road map of Russia's digital currency.
News of a digital Rubie had already been circulating in 2019 similar to China's digital Yuan since 2014, but in the case of Rubie the Russian Central Bank openly said a prototype digital token will potentially be arriving this year, 2021. This is a massive shift even for Russia as the country is restricting citizens of use of crypto but in turn creating their own crypto for the public.
“The selected target model is a two-tier retail model which assumes that the Bank of Russia is both the issuer of digital rubles and the operator of the digital ruble platform,” the bank said in a previous announcement. “At the same time, financial institutions open electronic wallets for their clients and perform operations over these wallets on the digital ruble platform.” - Russian Government
In a way this means Russia is in favor of crypto but not one they do not have control of. For those wondering if this can even happen just look at pictures that has been flowing around the internet.
Although picture is from four years ago it is clear Putin and Russia's government is very well aware what cryptocurrency is as there are ties with Ethereum creator Vitalik Buterin.
With all the recent negative pricing in crypto we can not lose track of the big picture here. There are two major challenges to the success of BTC and altcoins. The first was adoption. We can simply cross this out since BTC is now around $55k and market cap of crypto as a whole is north of $2 Trillion. These numbers has cause many who ignored crypto to rethink. Even if prices were to drop further there is a market for crypto as crypto exchanges have become popular as so much as some even went public such as Coinbase.
The second challenge facing crypto is government interventions. It is also clear now that countries with some of the highest GDP in the world such as China and Russia is moving forward in implementing crypto technology into their country's currency. I would have to believe this is a boom for crypto at least on the surface as it means the government are not fully against it. With government regulations and rules in place for crypto such as BTC and other altcoins their evaluations look very bright.
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