There is no denying that cryptos are nothing but a benefit to our modern lives. People use these digital assets from their many functions. These could be the transparency of companies, the anonymity in their use and overall profitability of trading them. However, cryptos are not only good for the general public but also very beneficial for governments as well. In most cases, governments are starting to utilize cryptos as a means of running banking operations or bypassing international sanctions with their use. The speed at which cryptos can be transferred completely trump the old ways, like Wire transfer, it is a much more effective way of doing business. But how exactly do governments see cryptos? Do they consider it a threat, or a boon?
Iran and Russia – best examples
Both Iran and Russia are currently facing a lot of sanctions from pretty much the whole world. Their political actions have caused them a lot of trouble in terms of their economies, and something needed to be done to bypass them somehow. You probably already know that businessmen don’t really care what a country has done in the past, as long as they can pay for their services. This was the case with Russia in the start of 2017 when predictions were made that their economy would continue tumbling down, the weakening of the Rubble is a testimony to that, therefore an alternative to international business was desperately needed. Same case with Iran.
Iran has gone as far as giving a national cryptocurrency the green light after their fiasco with Donald Trump. It’s just too hard to handle all of these sanctions and an Iranian state cryptocurrency can definitely give them a chance to breathe. The realization of the project, however, remains uncertain, as many aspects are still being discussed among the authorities.
Russians had the same idea about a potential “Crypto Rubble”, but it was quickly disregarded. You see, Russia holds a lot more authority in the world, therefore nobody could truly dare to “go all in” in terms of sanctions. This meant that Russia still had a lot of opportunities as sanctions became softer and softer, therefore the idea was scrapped at the beginning, but the fact that it was introduced is already a good indicator.
China – bypassing own restrictions
China is well on its way to digitalizing most of its industries. However, this didn’t stop them from banning cryptos. However, many experts believe that the ban will soon be lifted as the government is starting to see cryptos in a new light. The fact is that the 70 companies, currently operating in the free trading zone of Guandong, have achieved quite a lot, and the Chinese government has noticed. Add that to the fact that Chinese are the least likely to use cash when making a purchase, and you have yourself a recipe for a crypto haven.
More to come
As cryptos continue to grow, despite their price fall in the recent past, governments are finding it un-affordable to ignore them. They are all gearing up for an actual crypto dominated future, and it can be seen. The success of Ripple-Net is also a testimony to the bright future, as banks are starting to utilize the digital assets more often. The fear that ensured bans in some countries is starting to fade away, as authorities start to actually research and learn more about cryptos. It is just a matter of time before everything switched over, but which crypto will it be?
No matter what you think about Bitcoin or Ripple, the cryptos that will be most prominent on a national level, will definitely be stablecoins, which the governments themselves will undertake in terms of development. So keep an eye out, you don’t want to miss the big prize.