Some of our posts may have affiliate links including this one. That means if you make a purchase I may get a commission (at no extra cost for you). To find out more about it read our Disclosure page
Banks, big business, and governments now seem to like bitcoin just fine. What changed?
For nearly the entirety of Bitcoin’s existence, the traditional financial sector and governments around the world have been quick to criticize.
Largely because bitcoin has long been touted as the best alternative to traditional finance, and all of the corruption and manipulation that fuels it.
As a fully decentralized and largely anonymous currency, bitcoin has often stood for everything that banks and governments aren’t.
Transparent, open source, and decentralized finance offers anyone and everyone the chance to take control of their money.
No credit checks or security payments are necessary – just a free online wallet.
Exchange platforms have taken this financial freedom a step farther, as some- like the novice-friendly Bitvavo, are actually dedicated to helping people who don’t know what they’re doing buy, sell, and trade bitcoin in order to improve their financial security.
These platforms also make it simple and cheap to send money anywhere in the world- something that would make a classic institution cringe.
But recently, big banks and governments have seemingly begun to take bitcoin much more seriously than they have in the past.
Working closely with blockchain technology and even attempting to integrate bitcoin and cryptosystems into their custodial portfolios. So where exactly does this newfound friendship come from?
What may superficially reveal a change of heart, might actually be banks wising up to the new habits of their customers.
Since the economic crash the novel coronavirus brought down on the world, people have begun to view cryptocurrencies in a new light.
Particularly in the US, a historic financial trendsetter, Everyday people began to see cryptocurrency as a hedge against possible future inflation and a weakened faith in centralized banking practices.
Possibly taking a page from Venezuela’s playbook, many began to notice that cryptocurrency could offer a reliable place to stash any excess cash that wouldn’t fall prey to the aftermath of a broken economy.
It also offers a simple and straightforward way to move funds between family members in different countries. Near-instant transactions and leaving the extortionate fees of money wiring behind.
Leaving banks little choice but to embrace this new wave of shifting loyalties.
Even companies like Visa and PayPal are starting to see the light- as both companies are rumored to begin considering accepting digital currencies as payment forms on their respective platforms.
Which just seems to dig up more questions with even fewer answers. However as the crypto space evolves, more traditional financial schemes begin to crop up.
Things like investing in bitcoin derivatives and bitcoin lending are starting to make genuine headway in the market.
Governments worldwide have been contending with the headache of how to legislate crypto since it really started to take hold in 2017.
From tax burden classification, to how best to thwart illegal activities without completely dissolving bitcoin’s pseudo anonymity has provided its fair share of bureaucratic tensions.
However, they seem to be working it out well. In the United States legislature that seems to be fairly agreed upon by all has been implemented.
Despite the newest laws regarding KYC protocols on exchanges, there is still a myriad of ways to get your coin and keep your name clear of registers.
Some governments have even taken the relationship a step farther- proposing their own types of digital stablecoins.
Countries like Sweden, Japan, Ecuador, and even the US are all considering how to implement their own brand of centralized digital currencies into the marketplace.
There’s also serious thought being given to the idea that cryptocurrencies may be the best choice when considering the allotment of universal basic income. A strategy that many think will need to be in place as the virus continues to wage war of livelihood and the economy.
While a centralized digital currency makes little sense to many who believe in bitcoin’s promise and basic function, it could be the only way for governments and big business to realistically break into the marketplace of the future.
As even countries that have tried to prohibit the use of crypto have failed miserably thanks to its universally open and anonymous nature.
Hello and welcome to Go Cryptowise.
My name is Per Englund and I’m a long-term fan and investor and trader of Bitcoin and other cryptocurrencies. I caught the attention of Bitcoin like many other several years ago, but it was first around 2016/2017 that I truly got into cryptocurrencies and blockchain technology.
I have since traded, bought, researched and learnt about this new emerging space to the fullest. When not producing crypto-content I create and design new products and businesses. And I want to combine my business experience with my passion to create meaningful content for all our readers.
And I am bringing this vision to my writing and how Go CryptoWise work.
Connect with me on LinkedIn. Ask me anything on here.
Get in touch with me to find out more about Go CryptoWise and what we care about.