Recent Trends in Crypto-currency
The path of crypto-currencies has not run smooth since the outset of 2018. Many digital currencies, some of which had soared to their highest ever levels at the end of 2017, dropped to record lows once the new year began. Bitcoin, IOTA, Ethereum and Ripple, considered to be leaders among the crypto-currencies, lost massive amounts of value. The naysayers felt justified, and some were even waiting for the end. National banks which had warned against crypto-currency value spikes fuelled by speculation, felt they’d been proven right. The truth is, however, that crypto-currencies often plummet around the new year period. Why is this? Some believe it’s because of the changes in routine at the start of a new year. Many crypto-currency watchers have observed that digital currencies with strong connections to the Asian market tend to go very quiet when festivals are on. Once the Asian traders are back at work, the action is sure to begin.
Why Crypto-Currencies are More than a Speculative Investment
We’ve all heard of the crypto-currency revolution. However, there are many who view blockchain and cryptocurrency only as material for speculation. That’s the reason for much of the criticism surrounding these technologies. The truth is, cryptocurrency is much more than that. Crypto isn’t just a new commodity to be traded. It’s actually a revolutionary technology which is set to totally change the financial system, along with life as we know it. In the old days, we went shopping armed full purses and wallets. Now, all we need is a mobile phone. No need to carry plastic cards and remember PIN numbers. Is this really the future? Yes and it’s not too far away. Already, the Welcome Center in Malta is dealing with companies some of which are almost completely automated. Why? Because when it comes to certain tasks, anything man can do, machines can do better. Computers are more efficient and can take care of many tasks effortlessly. What does all this mean? It means that crypto-currencies are no short-term phenomenon. They are here to stay.
How Do Nation-States React to Digital Currencies?
Ever since the digital currencies started to soar in value, it has become evident that national governments and central bank authorities are not at all pleased about them. One of the most notable criticism has come from Jens Weidmann, the President of the German Bundesbank. He has declared that Bitcoin is is neither economically nor economically efficient.He’s obviously not a fan. His view is echoed by his international colleagues. Venezuela and North Korea have set up their own crypto-currencies, which have now run into difficulties. It makes one wonder. Why is there such opposition towards decentralised, digital currency. They are often criticised for lack of transparency and inability to trace. However, this criticism is unfounded owing to the fact that every single payment is recorded on the blockchain and remains there till the end of time. Digital currencies are often criticised for financing crime. However, is it necessary to criticize the entire digital currency system? This criticism is coming simply because digital currency is not under government or state control.
Nation-States Lose the Opportunity to “Print Money”
The truth is that crypto-currencies can function without the need of state or bank support, rendering them effectively obsolete. . Now, however, all that’s theoretically required are Banking support was once mandatory for a financial transaction to take place. Now, all that’s Needed is a payer and a payee. The blockchain confirms and supports the transaction. The power once held by central banks in traditional currency transactions is not at all present in crypto-currency. The central banks alone controlled the money supply and decided on the rates of interest. This has given them unimaginable powers. They were at liberty to increase the money supply and then perform devaluations on the currencies as they saw fit. . However, with digital currencies, this option no longer remains. So what then, is the function of the central banks? The truth is, they have no role to play in a blockchain-based currency system. And if crypto-currency is the financial future, the central banks are literally rendered extinct.
How Malta Wants to Regulate Crypto-Currencies
While many national systems are seeking to take action against crypto-currencies by banning them and imposing limiting regulations, Malta is taking a totally different path. Malta is, in fact, currently preparing crypto-currency regulations, being the first country to do so. For the Maltese government, this is seen as a step towards a more competitive, updated economy, ready to embrace the future and perform well on the international scene. Creating proper regulations is definitely a difficult task, but it is mandatory for doing businessthe in the area of Blockchain. Business can only be carried out safely and legally when the right regulations are in place. The aim is to give digital currencies legal status. Malta will probably concentrate on approval and licensing rules for crypto-exchanges and for other money processing companies. So the crypto-currency sector would be legitimized by national laws. Whether or not this will be performed by the Maltese MFSA or by another newly-created government authority has yet to be decided.
The Current Status of Regulatory Developments in Malta
The current situation in Malta is not yet settled. The government has already recognized Blockchain the future of finance. As the finance sector plays an important role in this country's economy, the government wants to create an agreeable atmosphere so that finance will continue to be a reckoning force. Numerous committees and groups are currently working on developing revolutionary legislation and licensing regulations. What exactly these may entail is not yet completely clear to us. Perhaps they will be somewhat akin to regulations for obtaining gaming licenses. So this leaves many of you wondering how to prepare for the time when the new legislation comes. How will you prepare properly? Let us reassure you. There is no need to be anxious. We are here to help you and guide you. You can trust us to give you the correct guidance in this matter. The Welcome Center Malta has partnered with local and international experts which are already very familiar with the commissions’ activities. We are therefore in an ideal position to help and we are ready to help you today by providing the most relevant documentation possible. That way you will not have to waste any time when the moment comes and the new regulations are firmly in place. Because as you know, timing is everything.
The Current Status of Regulatory Developments in Malta
The current situation in Malta is not yet settled. The government has already recognized Blockchain the future of finance. As the finance sector plays an important role in this country's economy, the government wants to create an agreeable atmosphere so that finance will continue to be a reckoning force. Numerous committees and groups are currently working on developing revolutionary legislation and licensing regulations. What exactly these may entail is not yet completely clear to us. Perhaps they will be somewhat akin to regulations for obtaining gaming licenses. So this leaves many of you wondering how to prepare for the time when the new legislation comes. How will you prepare properly? Let us reassure you. There is no need to be anxious. We are here to help you and guide you. You can trust us to give you the correct guidance in this matter. The Welcome Center Malta has partnered with local and international experts which are already very familiar with the commissions’ activities. We are therefore in an ideal position to help and we are ready to help you today by providing the most relevant documentation possible. That way you will not have to waste any time when the moment comes and the new regulations are firmly in place. Because as you know, timing is everything.Want to learn about bitcoin? Read our guide!
