Bitcoin and other cryptocurrencies are an interesting topic of conversation right now. In fact, it is such a hot topic, regulators are scrambling to come up with guidelines. That is much easier said than done, though, as no existing framework is applicable. France has asked the G20 to come up with a regulatory approach to this new form of money at the next meeting. Whether or not we will see any major developments in this regard, remains to be determined, though.
It is always interesting to note the lack of Bitcoin regulation around the world. Very few countries have taken active measures in this regard. In Japan, Bitcoin and altcoins are legal tender as of right now. The rest of the world still remains indecisive on this front. With governments and regulators largely ignoring this industry until now, it is evident something will need to change sooner or later. The G20 will try to establish a regulatory framework for cryptocurrencies at their next meeting. This is much easier said than done, though.
G20 to Discuss Bitcoin Regulation
At the request of France, we may finally see more Bitcoin regulation in the future. Whether or not that is a good or bad thing, has yet to be determined. It is of the utmost importance the G20 doesn’t stifle innovation whatsoever. Whether or not they will take the lenient route, is unclear at this point in time. After all, it would make more sense to them to just ban cryptocurrency altogether. Then again, this new form of money also offers a degree of innovation no other financial tool can provide right now. It is a fine line to walk between regulation and innovation.
French Finance Minister Bruno Le Maire explains this request as follows:
“There is evidently a risk of speculation associated with Bitcoin and other cryptocurrencies. We need to consider and examine this and see how…with all the other G20 members we can regulate bitcoin.I am going to propose to the next G20 president, Argentina, that at the G20 summit in April we have a discussion all together on the question of bitcoin.”
While it is commendable to see this course of action, we may not like the outcome too much. Until now, this group has largely ignored Bitcoin, which makes this sudden request all the more significant. A lot of officials aren’t too receptive to cryptocurrency whatsoever. That situation may still come to change in the near future, though, depending on how things evolve. A lot of people will play very close attention to this debate. Bitcoin and cryptocurrencies can make a big impact in a lot of countries, that much is certain.
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