Cryptocurrencies are often viewed as speculative assets. However, during crisis moments, they demonstrate their real utility. This article highlights examples of Bitcoin's use and the need for clear regulation.
Real Applications of Bitcoin
The events in Cyprus in 2013 illustrated how ordinary people sought alternatives amid the threat of a banking crisis. "People in Cyprus started buying Bitcoin as a safe haven during that time," said Digital Chamber founder and Chair Perianne Boring.
Another striking example is Afghanistan, where women are prohibited from opening bank accounts. Roya Mahboob’s coding school opted to use Bitcoin as there were no laws preventing women from having Bitcoin wallets. "They were able to take their savings with them when the Taliban returned," Boring noted.
Cryptocurrency Regulation
In the U.S., the Biden administration's actions to tighten control over exchanges and tokens have transitioned to a new policy. Under Paul Atkins, the SEC faces pressure to clarify which assets fall under its jurisdiction.
"The SEC should not be the primary regulator for cryptocurrencies. Most are commodities and should be regulated by the CFTC," Boring added.
Conclusion
Regulation of cryptocurrencies is becoming a significant aspect for developers and investors. Clear rules could allow the U.S. to stay competitive on the global stage, while uncertainty may lead to the offshoring of innovation. "Having laws and regulations in place that allow companies to build with clarity is essential for scaling this technology," Boring concluded.
The use of cryptocurrencies in real crises underscores their importance far beyond speculative markets. Regulation will be a key factor in the sustainable development of the crypto industry.
