Sunday, June 23, 2024

Are authorities’ concerns about cryptocurrency’s influence on sanctions justified?

Cryptocurrency regulations are a slippery slope. With new developments such as that of CBDCs, it is only becoming more confusing and difficult for regulators to handle. As a result, regulators are often coming down hard on crypto with stringent regulations that hinder both ethical and unethical transactions.

The newest area of concern is international transfers. As long as international transactions take place in fiat currencies, the transactions come under sanctions from international bodies. Some of the most influential international bodies in this context are the World Bank, International Monetary Fund, and the United Nations. These bodies ensure that international transactions do not happen directly from sender to receiver and instead use an intermediary. The intermediary makes it easy to keep track of transactions and ensures that nothing events the institutional eyes. Crypto, however, has flipped the situation on its head.

With international transactions taking place over crypto, these institutions are suddenly finding themselves powerless in one of the most important aspects of international economics. It is possible due to the decentralized nature of crypto and the widespread adoption of Bitcoin and other tokens.

The development of CBDCs is another challenge for these international bodies. On top of that, official CBDCs cannot be banned or regulated as strictly as cryptocurrencies. As predicted earlier, CBDCs will remarkably lower international transaction processing costs. For this reason, it may soon be the medium of choice for international transfers. How the international governing bodies deal with this shift will have a huge effect on the cryptocurrency industry.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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