The debate about the government’s control over bitcoin is always going on in the financial world. Whether it should be regulated or whether it should be set free to run on its own, this is a topic that sees an instant divide most often. While some believe that regulations will help curb out the negative elements associated with this world, others are of the view that the very essence of decentralization is undermined if the government takes hold of this space.
BlockPublisher recently got in touch with Caleb Chan, a digital currency advocate at Private Internet Access. Caleb has a Master’s in Digital Currency from the University of Nicosia. The following Q&A shows the views presented forward by Caleb regarding this space.
- Will bitcoin replace fiat or act as a reserve currency in the future?
Caleb: “As long as there are centralized governments and armies, there will be fiat currency. In the future, I think we’ll see bitcoin acting as a reserve currency before we see fiat finally done away with.”
- Is it the digital gold?
Caleb: “Currently, because of issues with transaction speed, it is kind of like digital gold.”
- Should this market be regulated?
Caleb: “Bitcoin should not be regulated unnecessarily or in overreaching ways. There is a difference between legislation meant to stymie the growth of Bitcoin versus protecting users of Bitcoin.”
- What can governments do to curb out the negative elements linked with bitcoin?
Caleb: “Nothing. If it’s successful, negative elements will be attracted to it. Governments shouldn’t throw out the Bitcoin baby with the bathwater.”
Caleb seemed to be of the view that governments should be very careful regarding their approach when it comes to bitcoin regulation. The essence of decentralization lies in the elimination of third-parties from a framework. With governments getting involved, a centralized framework might get established.
But then again, the illegal and negative activities linked with bitcoin can also not be denied and ignored. If regulations are made in order to eliminate the negative usage, this might actually help attract the general public in this space with a layer of trust in place. As per Caleb, the governments should not form regulations unnecessarily and in overreaching ways. There is a certain level of freedom that the bitcoin users demand.
Still, nothing concrete can be said at this moment. It is still too early in the bitcoin world. Just like every other technological innovation, bitcoin is still going through its evolutionary process. It will be very much interesting to witness what becomes of this asset as more and more developments are made in this space.