Should Government Use Cryptocurrency Technology?

Cryptocurrency Technology

In the recent times, the technology has made unbelievable advancements. Such development has redefined the life of an individual on every aspect. In actual, the development is an ongoing process and hence, the life of humans is constantly improving day by day.

The government reacts slowly with regards to legislating new means of technology. Thanks to the mere fact that employees have done a great job. In most of the situations, it’s quite challenging for a government employee to take spare time and concentrate on the issues that arise from the new technology. This signifies that the government indulges in the problems which arise from the new technologies when a lot of problems were reported that affected the citizens. Till then, technology is developed to the point that government creates new departments for handling the issues which are linked with the technologies.

The latest inclusion in this context is the Cryptocurrency Exchange Platform. The involvement of government was more in the Cryptocurrency technology.

What is Cryptocurrency?

Cryptocurrency is a digital currency that is designed to levy security and privacy in the monetary transactions online.  It makes use of cryptographic encryption both for generating the currency and verifying the transactions. New coins are formed by a process known as mining, while the transactions are recorded in a public ledger, which is known as Transaction Block Chain.

How to Use Cryptocurrency Technology?

It’s easy for the common people to utilize this digital currency exchange and cryptocurrency technology. You just need to follow the below steps:

  • You require a digital wallet, for the purpose of storing the currency.
  • Utilize wallet for creating a unique public address. This will allow you to receive the money.
  • Utilize the public address for transferring the funds in and out of the wallet.

Cryptocurrency Wallets – This is a software program for storing both the public and private keys. Moreover, it also interacts with different blockchain so that the user can send and receive the digital currency and keep a track on their balance.

Types of Cryptocurrencies

Bitcoin – This is the very first cryptocurrency which started. This remains the market leader in different categories. Its price was high, maximum security, widest assumption, and most of the development Active and rational. It’s the one piece to data which is signified in the traditional market and is the best cryptocurrency to invest.

Ehereum – It is known as Turning-complete programmable currency. This helps the developers to build many distributed apps and technologies which wouldn’t work well with the Bitcoin Alternate Coin.

Litecoin – A cryptocurrency which was formed with the objective to be the ‘digital silver’ as opposed to Bitcoin’s digital gold. Also, it can be said as the fork of Bitcoin. However, unlike its predecessor, it results in the products of blocks four times faster and has four times the maximum number of coins.

Monero – This is a type of cryptocurrency with the private transaction abilities. It has the most active groups because of the open and privacy-focused standards.

Qtum – This cryptocurrency is a combination of Bitcoin and Etherum technologies. The network boasts the reliability of Bitcoin at the time of utilizing smart contracts and distributes apps, and how much it works within the Ethereum network.

Reasons Why Government Show Its Involvement in Cryptocurrency Technology

Fraud

In most of the situations, the government gets involved with the new technologies when such technologies defraud its citizen. The best example of this is online gambling. As such activities can easily get overlooked; businesses which operate them at times find themselves the topic of government examination. As expected, it occurs when a player reports it as a crime when losing out money while gambling. When the investigators can’t convey the fault, the next stage is for the government to make it illegal to take part in such a kind of business. Since the BitConnect and other cases may appear like an exemption, it will be utilized as justification for the government involvement in how their residents take interest in the Cryptocurrency Exchange Platform.

Revenue

Most of the governments generate revenue by receiving tax from the people and businesses. Their work gets simpler with the mere fact that the individuals deposit their income in the bank when it exceeds a specific amount or they report any profit. Hence, by utilizing the services of a bank make it easier to recover the forcefully unpaid taxes. Utilizing the blockchain technology means that the government will have a small control over the income which hasn’t been cashed.

In the event that more individuals utilize cryptocurrencies, it could be difficult for the government to accomplish their revenue targets and as such, the mainstream banking industry gets collapsed. Keeping this thing in mind, the government will make efforts to figure out a technique to gain control over the manner the cryptocurrency funds are cashed out. This will make the blockchain turn out to be more tax-haven.

Crime and Terrorism

One of the major concerns raised is the probability of the dread cells and criminals utilizing the secrecy provided by the blockchain technology to legalize cash or transfer funds for utilizing the terror activities. Such issues might result in a claim where the government grants access to a Cryptocurrency trade. The agency of government that filed the suit wants to see the earlier records of how the transaction is carried. This helps in determining who cashed their assets and from who did the exchanges begin.

Fiat Money

Fiat Money is a currency that is issued by a government as a legal tender and this doesn’t support any asset. The government makes use of its authority and force individuals to accept the fiat money as a payment mode. The government itself receives it as a kind of tax transfer. In such a way, it will print more and lend itself to being borrowing from anyone.  The challenge with such an approach is that it might lead to high inflation rates.

The Bottom Line

As more individuals will learn about the blockchain or Cryptocurrency technology concept and accept the Cryptocurrency Trading Platform as a mode of payment; it is assumed that the technology will receive more attention from the government. Hence, the government is looking forward to build up regulations regarding the use of Cryptocurrency technology.


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