The challenge most people don’t understand with respect to government regulation is that it’s not possible by traditional standards. It’s like saying the government will regulate internet commerce. How? The internet is not centralized - it’s a distributed network that literally exists almost everywhere. Same with cryptocurrencies, it’s a democratized and distributed blockchain that exists everywhere worldwide now - the entire ledger for the blockchain is electronically distributed and held by various coin stakeholders worldwide. Blockchain technology was built to decentralize finance by design (hence the defi term often associated with crypto). The best the government could do is to tax cryptocurrency transactions.
The third generation cryptocurrencies like Cardano are offering up governance capabilities to encourage nation states to consider adopting digital currencies as national currencies. It is rumored that at least one African nation will soon announce adoption of Cardano as their national currency platform - in part to better reach the unbanked. Democratization of digital currencies like this will likely help third world nations to compete against traditional first world nations that still embrace their own fiat currencies. Fiat currencies are the dial up internet modems of times past, digital currencies are the broadband internet connections that are the future. Just a question of when, not if. The day of the USD as the world reserve currency are numbered IMHO.
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