The cryptocurrency world has been gaining serious attraction from the U.S. lawmakers since the social media giant Facebook announced its ambitious cryptocurrency Libra. Giving the control of a global financial framework to a company like Facebook is a big liability for the lawmakers. Their only aim is to make sure the entire project falls under proper regulatory net which has largely been missing from the world of bitcoin.
The co-founder of Newfang.io, Aravindh Kumar recently got in touch with BlockPublisher as he opined about the 3 effects of Congressional hearings that are expected to have on the bitcoin and crypto world;
1. Helps show the sentiment of the government and their understanding.
2. Open dialogues are extremely critical for new tech, especially when you want to educate and clarify.
3. Great sign that they aren’t banning/fining with a knee jerk reaction.
The increased attention from the senate committee attracted by Libra has proven to be a blessing on the sidelines of crypto world as lawmakers are now taking their time to evaluate and regulate it before rejecting it altogether.
After diving deep into Libra with its dedicated hearings for the digital asset, the Congress has also turned its focus towards the broader cryptocurrency world. The goal is to better regulate this space so that issues such as money laundering and privacy-control can be filtered out before the crypto genie gets out of the bottle and comes in direct competition with the banks with greater adoption.
Although the crypto world expects itself to be set free, the incoming regulation is likely going to prove to be better in the long-run as predicted by many experts. Regulation has largely been missing from this nascent space due to which many illicit activities have flowed into it.
The acceptance on the institutional level has also been on the lower side due to this lacking. On the governmental scale, bitcoin is not accepted whole-heartedly and in some countries, it is even banned. The current approach that is shown by Congress of trying to understand this space has proven that at least the crypto space is not getting a knee-jerk rejection on the official scale which is a good sign.
The sentiment from the government has also gotten highlighted from the recent Congressional hearings. The lawmakers are trying to better understand this space so that investors can be provided with a secure pathway to enter crypto space.
As proper regulations are imposed on the crypto world, acceptance on the institutional end is expected to result in the influx of huge capital into cryptoverse, taking the prices of various crypto assets further up. Overall, things are moving in a positive direction on the regulatory end.
Most importantly, the newly-grabbed attention in the crypto world has given it an opportunity to educate others, before it gets rejected altogether due to illegal activity prevalence. The image of cryptocurrencies has largely been negative in the mainstream media and the general public up until now.
Issues such as price manipulation, volatility, money laundering and scams all have contributed to building a negative aura around cryptos. But there is a positive side to the decentralized internet-based cryptocurrencies as well, which is largely ignored.
Cryptocurrencies provide an alternative to the banking system overcoming its innate issues such as inflation and centralized control by the banks. Libra is expected to expose the world with the power that digital currencies provide in terms of ease of payment and transfer of money across borders. With crypto hearings now bringing in regulation, things are moving in all the right direction for bitcoin and the crypto world in terms of increasing global adoption.