Regulated, Government Issued Cryptos to Challenge Bitcoin in 2018

Calls for cryptocurrency regulation were a resounding theme at the World Economic Forum in Davos last week.The world’s most prominent financial institutions remain wary of going all in on cryptocurrencies, amid fears of future regulation leading the market to tank.

Governments around the world have signaled their ongoing or imminent intent to legislate and regulate cryptocurrencies around the world, and it seems the largest banking and financial firms are waiting for more clarity before they forge ahead with plans to enter the market.

Countries like Russia are forging ahead with the creation of their own, government-issued cryptocurrency, which they can fully control. Others, like Venezuela, have been forced to do so to battle out-of-control inflation that has crippled its economy. Opposed to a decentralized and anonymous system, the creation of a cryptocurrency that governments can control is their only option to wrestle back some semblance of ‘control’ that has been handed to the everyday man using cryptocurrencies.

Speaking to RT at the WEF in Davos, Universa CEO Alexander Borodich said governments are keen to issue their own virtual currencies that would be backed by commodities like oil.

“From my perspective, they will offer state country-wide cryptocurrencies like Cryptorruble or crypto-barrel if they like to… back the oil they have or other natural resources.”

He added that 2018 would see the emergence of these state-issued cryptocurrencies to challenge the dominance of Bitcoin and other popular virtual currencies.

Nefarious uses still a concern

Despite the best intentions of honest developers, exchanges and Blockchain engineers, there is a prevailing sentiment that the underworld still uses cryptocurrencies. It’s been a number of years since the closure of Silk Road and subsequent black markets, but heads of states are still citing concerns over the nefarious uses of virtual currencies…

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