What are the hurdles to making cryptocurrency part of traditional economies?

Cryptocurrency & Bitcoin Innovation Regulatory Compliance

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Board Member, Advisor, Executive Coach in Software2 years ago

Given the executive order (EO) on Ensuring Responsible Development of Digital Assets (see link below), there's some potential for cryptocurrency to be fully adopted and legitimized. But being a part of the traditional economy requires some level of control and you can't fully control crypto. So the evolution of that EO and other legislative actions will continue to mature and evolve over the next few years. And I'm sure there will be a bunch of nonsense proposals, like the EU’s attempted ban on proof of work (PoW), that might come up from people who have other economic incentives and want to slow the progress.

https://www.whitehouse.gov/briefing-room/presidential-actions/2022/03/09/executive-order-on-ensuring-responsible-development-of-digital-assets/

Managing Partner & CISO in Software2 years ago

This is something that we will have to figure out for our regulators in general because 40 years ago, the people who came into power as representatives in Congress and the Senate could adapt to the speed of business, economics and change. Today you still have people questioning Mark Zuckerberg on how Facebook makes money. In 10 years, the senators who've been there for 30 to 40 years are going to be so out of their depth because this is a completely different ballgame. That's going to be the biggest challenge to having meaningful policy change. Otherwise, technology will be technology 40 years ahead of legislation.

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Board Member, Advisor, Executive Coach in Software2 years ago

If you go back to 40 years ago, the definition of the money supply in the United States was different from what it is today. With these cryptocurrencies, the economic definition of the money supply is completely different. How does the federal government moderate inflation and the economy in a digital currency world? That is a critical issue we need to think through that we're not even talking about. But that act probably has a bigger macroeconomic implication, both positive as well as negative, if we don't understand this and don't think about how to do that appropriately. It's not like you can play with the federal exchange rate when you're in cryptocurrencies at this point. All those international banking things, like LIBOR (London inter-bank offered rate), have been around for a long time and have also evolved, but they're anchored in the world of physical currency.

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Managing Partner & CISO in Software2 years ago

That’s also interesting because one aspect of Bitcoin and other cryptocurrencies was to make it so that centralized banks can't manipulate currency and do this. Now we're wondering how we can make it so that we can manipulate cryptocurrencies ourselves to support the ecosystem that we have now.

Data Scientist in Consumer Goods2 years ago

The price of cryptocurrency just fluctuate too much. There are new tools that most companies are not used to as well, making transactions much harder.

Managing Director in Manufacturing2 years ago

Proponents of crypto need to better align the advantages of it to real business needs. All to common we see and hear it just being tossed at all problems. This undermines the validity of the technology.

CIO in Healthcare and Biotech2 years ago

Traditional economies rely on the perception that there is stability and control that limits the risks of financial impact. Cryptocurrencies rely on the fact that it is not controlled and is a global currency. The only way I can see if it becomes more broadly utilised if there is a bridge in that gap. It might be some control on crypto through an authenticated banking system but still globalised but then also a relaxing of some regulation of current markets. Only time will tell.

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