As of now, the trust among the general public regarding cryptocurrencies is relatively on the lower side. People and investors hold back from touching the world of cryptocurrencies owing to the dirty aspects that are linked with it. Volatility and manipulation have become the core of the modern day crypto framework. The market is highly unregulated owing to which, various illegal activities are percolating around. So, do we need regulation? Dentacoin, a blockchain-based project aimed at forming a global community of dentists and patients, certainly seems to think so.
Talking to BlockPublisher, the platform stated:
The cryptocurrencies that have an immanent added value and practically improve people’s lives have all chances to further develop in the future. Still, in order for this new Blockchain-based economy to really meet this objective, we need clear and well-thought national/EU/global regulations that protect both the core idea of cryptocurrencies and the interests of people. Many far-sighted cryptocurrency companies proactively go for self-regulation in addition to compliance with already established regulations such as anti-money laundering.
If cryptos are to go mainstream, the establishment of official frameworks in the form of exchange-traded funds (ETF) and regulatory frameworks are the need of the hour. As such frameworks are established, the trust among the general public and the investor community regarding this volatile world will increase more and more. Regulation will help eliminate the illegal activities that are associated with the dirty market of cryptos leading to more people flocking in.
As improvements are made in the crypto world, the chances of fiat being replaced by cryptos also grow higher. Regarding the chances of this happening in the coming time, Dentacoin stated:
Cryptocurrencies in their current stage of development will most probably not fully replace fiat currencies but we believe that a multi-currency system, combining crypto and fiat currencies, can stabilize the financial world. We expect more and more industry-specific Blockchain solutions with dedicated currencies to appear in the years to come which will allow for greater freedom, secure, faster, and cheaper transactions – independent from national borders, banks and governments.
As the issues associated with the fiat world grow more and more, the need for an alternative financial framework grows bigger. The closest alternative to fiat that the financial world finds in the modern day is cryptos. So, even if cryptos do not completely replace fiat in the coming time, they will surely play a major role in the mainstream financial world.