Cryptocurrencies and Blockchain technology have been around for a while now, more than a decade to be precise, but the regulatory authorities could not be further away from creating a regulatory framework for the decentralized currencies. Before the price hike of 2017, cryptocurrencies did not get much attention, but after the surge, people started to view it as a pretty profitable investment tool. The original utility of Bitcoin and other crypto was to be used as an alternative to the fiat. It was a trustless platform that allowed two parties to initiate transactions in a transparent, secure and immutable environment where there would be no intrusion from any third party, commonly known as the middle-man. However, due to lack of regulatory framework, a mass adoption for now does not seem to be in the cards for cryptocurrencies.
Recently, BlockPublisher got in touch with the Award-winning tech executive, with 25 years experience, having expertise in Regulation, Molly O’Neill, COO of Narrative. According to her, the only hurdle in the way cryptocurrencies is the fact, that it is yet an unfamiliar territory, which is still in its infancy. She said:
Regulation of decentralized currency is a very different model – and therefore it is very challenging to regulators to think about what to do. Let’s face it, it is much easier to modify or add to existing legislation/regulation than trying to regulate something new that is technical in nature. Regulators are trying to understand the technology, where to set the guard rails to protect investors without stifling innovation, and balance the cries of those working with centralized currency. It’s very difficult and that is why you see so many countries, like the United States, look to experts and studies before going to fast.
According to Molly, there should be more security protocols set in place so that the technology that is relatively new and vulnerable, as it has been used to carry out a number of transactions for illegal purposes, would not be misused. She added on:
This is why I would like to see regulators tackle putting some initial regulations on exchanges – where putting together more requirements like instituting security controls, will go along way to help current investors feel more confident and to make it harder for criminals looking to exploit the cryptocurrency market.
All that being said, cryptocurrencies have precedence over the centralized currencies. They are more secure and they cultivate more trust in the two persons involved in the transactions. The first and foremost problem that is causing a delay in mass adoption, and potentially causing masses to refrain from using them in daily life is lack of regulatory principles. The need of the hour is to educate more people about crypto and its utility. A mass adoption of cryptocurrencies cannot be made possible without masses being educated about it.