Saturday, February 4, 2023

Banks and Regulators May Be Losing the War Against Cryptocurrency

Banks and Regulators May Be Losing the War Against Cryptocurrency

Despite hostility from banks like Capital One and the recent mark of “Red Tuesday,” cryptocurrency is staying strong. Its popularity has grown so much, in fact, that it appears many banks are giving up their plights to halt digital coins in their tracks, and some are even dipping their fingers into the “crypto pool.”

Also see: Blockchain Bitcoin Wallet to Add U.S. Buy and Sell Functionalities

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People Naturally Want What’s Hard to Get

At the recent bitcoin conference in Miami, co-founder and CEO of Aidcoin Francesco Nazari Fusetti explained:

“It’s impossible to ban bitcoin and cryptocurrency trading because the more you regulate, the more it will become popular.”

In many ways, regulating crypto is like trying to keep children away from a candy jar. The more you say no, the harder you work to keep the aside, the more tempting those sweets will become, and those kids will do just about anything and risk any punishment to get their hands on the sugary treasures before them.

People Will Do What They Must to Obtain Bitcoin

The crypto market is extremely attractive to financially disaffected young adults. The idea of having more control over one’s finances is something many of us would like to take advantage of, and the more banks get in the way, the more common trading will become.

CEO of Polymath Trevor Koverko points at South Korea as the prime example. The country’s strict guidelines surrounding bitcoin and cryptocurrency trading have made it the ultimate hotspot for digital coin love. South Korea currently accounts for nearly 30 percent of the world’s crypto trading, despite recent attempts to ban exchanges and halt cryptocurrency-related crimes.

“Such intervention will further squeeze the already heated South Korean market, further drive up spreads to other markets, and push order flow outside the country,” Koverko confidently states.

He believes if South Korea is ever dumb enough to implement further restrictions and make trades difficult, people will simply go elsewhere. Trades may stop in South Korea, but they won’t stop completely.

Crypto-Love Is Branching Out

In addition to trading, cryptocurrency mining has experienced its fair surge in popularity – so much, in fact, that mining revenue is now appearing on the earning statements of one of the world’s largest chip makers.

Taiwan Semiconductor Manufacturing Company (TSMC) builds over half the world’s computer chips, and recently reported second quarter income derived from a massive swell in crypto mining. Thus far, the money amassed sits somewhere between $350 and $400 million.

Co-chief executive officer Mark Liu explained, “We are quite certain that deep learning and blockchain technologies, which are the core technology of cryptocurrency mining, will lead to new ways of semiconductor innovation and demand for years to come.”

Banks Are Seeing the Benefits

And in the ultimate “if you can’t beat ‘em, join ‘em” move, Japanese mega-bank Mitsubishi UFJ Financial Group has partnered with cryptocurrency exchange GDAX to roll out its own cryptocurrency (called MUFG) this coming March. The coin underwent beta testing in 2016, and executives feel its ready for widespread exposure.

So, the real question is whether bitcoin regulation really poses that much of a threat, in the grander existential sense Banks appear to be losing the war against crypto, and digital currency has made a deep-enough mark that any threats to bitcoin and its cousins likely won’t stop users from pursuing unregulated, financial independence.

Could the day finally come when crypto replaces banks altogether? Post your comments below.

Images via Pixabay, IBTimes UK

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