- All of the advantages of economic globalization will be available without the need for centralized control thanks to cryptocurrency. No one enjoys losing control, especially when it comes to global issues.
- The standard deposit insurance in the United States is $250,000 per depositor, per bank, according to the FDIC. EDIS, the European equivalent, pays up to €100,000 in compensation.
- Contract problems, economic attacks, including oracle failures, and governance attacks are covered by projects like Nexus Mutual for roughly 2.6 percent per year.
By 2022, cryptocurrencies legislation would be a prominent concern. As adoption pushes us over the point of no return, the threat of a global cryptocurrency prohibition appears to have practically vanished. It is now almost difficult to prohibit the use of cryptocurrency. However, just because there isn’t a planned blanket crypto ban doesn’t mean nothing will change. Most, if not all, crypto projects operate outside of existing regulatory frameworks or are subject to laws that are incompatible with existing financial assets like traditional securities.
Is It Really Feasible To Regulate?
Individuals investing in crypto have no protections, unlike those who invest in fiat currency. For example, if a bank in the United Kingdom fails and you lose your money, the Financial Services Compensation Scheme (FSCS) would compensate you £85,000 per firm. The standard deposit insurance in the United States is $250,000 per depositor, per bank, according to the FDIC. EDIS, the European equivalent, pays up to €100,000 in compensation. Given the current state of social engineering, it appears reasonable to accept some regulations allowing governments to offer investor protection.
However, it is debatable whether we require such assistance from governments. Isn’t it possible that these technologies should be developed by the crypto community?
Contract problems, economic attacks, including oracle failures, and governance attacks are covered by projects like Nexus Mutual for roughly 2.6 percent per year. Is it necessary to use traditional solutions to deal with disruptive technologies? Is it even conceivable for governments to enact fundamental, meaningful crypto regulations? Smart contracts appear to be made for this, and I’d prefer a cross-chain global crypto DAO to traditional governments, where most politicians have no idea what blockchain is. I’d like to see a cross-chain DAO offered to the world’s best crypto project validators, safeguarded in some way by a trustless voting method.
I’m not sure how this would work in a way that isn’t vulnerable to exploitation, but there must be a universe where this is conceivable. In this environment, the crypto community might vote on safe practices and deposit insurance via the blockchain.
If one of the DAO’s chains is hacked, the DAO might use its cross-chain treasury to pay back investors. Maybe it’s a bad idea. If you believe it is, send me a message on Twitter and explain why. I’d love to talk with you about the alternatives to government regulation.
It is improbable that the crypto community will be able to regulate itself in the near future. As a result, the need for government regulation is unavoidable. We can have potentially socially catastrophic outcomes when new technologies are allowed to expand enormously without official regulation. This isn’t simply a new technology; it’s a one-of-a-kind global monetary system.
Whoever controls regulation has the capacity to control the entire future financial system. According to Credit Suisse, we are witnessing the emergence of a new world monetary system. They believe that, as a result of the current global economic crisis, the digital renminbi will become considerably stronger in the coming months.
Globalization And Governance
Cryptocurrencies are here to stay, and they have the ability to replace the current system. As a result, a new battleground emerges. Controlling cryptocurrency regulation may be the only way for centralized governments to maintain control over the global economy. Economic, political, and cultural aspects of globalization are all present. Few people, I believe, would urge for the world to have only one cultural and political system. So why have we decided on a unified economic system?
Trade has become more accessible, services have been more efficient, and outsourcing has become more practicable as a result of economic globalization. The United States, the European Union, and China, on the other hand, control the vast majority of the system. All of the advantages of economic globalization will be available without the need for centralized control thanks to cryptocurrency. No one enjoys losing control, especially when it comes to global issues.
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Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2022/03/30/seems-to-be-control-really-possible-because-the-us-as-well-as-eu-compete-for-supremacy-in-cryptocurrency-legislation/