Encrypted currency issued and regulated by the government in 2018 will challenge bitcoin

nRunaway Comment: World Economic Forum held in Davos, Switzerland, encrypted currency has become an important issue. The calls for regulation in various countries have made it difficult for large financial institutions and banking institutions to act easily. In response, CEO of the blockchain startup Universa also said that in 2018 cryptocurrencies issued by various countries may challenge the status of cryptocurrencies such as bitcoin. The problems posed by cryptocurrencies have drawn attention, and the indifference of the Davos Forum has also made the cryptocurrency community angry.n
nTranslation: Annie_Xun
Last week at the Davos World Economic Forum in Switzerland, the call for monitoring cryptocurrencies was an important theme. Fear of future regulation will let the market sunk, the world’s most famous financial institutions are still not fully bet on cryptocurrencies.n
As global government agencies show their willingness to continue or begin to regulate cryptocurrencies, it seems that the largest banking institutions and financial firms want to wait for greater certainty before they can actually enter the market.n
Russia and other countries in the creation of government-controlled countries issued encrypted currency. Venezuela and other countries had to take such action against uncontrolled inflation. Ordinary people get some sort of “control” by using cryptocurrencies, so unlike the decentralization of anonymous cryptocurrencies, the creation of a government-controlled cryptocurrency is the only alternative to reverse the situation.n
At the World Economic Forum, Alexander Borodich, Universa’s chief executive, said the government is eager to issue its own cryptocurrency, backed by the value of commodities such as oil.n
n”From my perspective, they would issue legitimate national cryptocurrencies, such as Cryptorruble or crypto-barrel, if they wanted to, and supported by the value of oil or other natural resources.”n
nHe said the advent of cryptocurrencies in 2018 in those countries will challenge the importance of bitcoin and other popular virtual currencies.n
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Illegal use is still a problemn
Despite the good intentions of developers, exchanges and blockchain engineers, there is still concern that illegal currency may be used illegally. Many years have passed since the Silk Road and the subsequent black market closures, but state leaders have also raised concerns about the illegal use of virtual currency.n
The media once reported that U.S. Treasury Secretary Steve Mnuchin said cooperation has been made to prevent illegal transactions from using cryptocurrencies.n
n”Whether it’s digital currency, bitcoin, or something else, the main focus of cryptocurrencies is to ensure that they are not used for offenses.”n
nAnother important issue is that in the past 12 months, the welfare of financial markets and systems has been shaken by the massive adoption of bitcoin and other cryptocurrencies.n
n”We encourage financial technology and we encourage innovation, but we want to make sure that all our financial markets are safe and we want to make sure that the rest of the world, many of the G20 countries, have taken steps to enact the same rules.”n
nIMF Chairman Christine Lagarde’s understanding of the cryptocurrency posture is grim.n
n”Anonymity, a lack of transparency, how it hides and protects money laundering and terrorist financing are unacceptable, and that needs to be taken into account, but there are also innovations in these activities.”n
nHowever, cryptocurrency communities also expressed bullish sentiment through social media, criticizing the indifference at the Davos forum.n

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