- In every sector, there is a potential for fraud and other criminal activity. The use of cryptocurrencies ranges from creating peer-to-peer networks with embedded transaction transparency and incentive structure to attempts to decentralize payments and reduce corruption and black market.
- Blockchain, the technology on which cryptocurrencies are based, is known for its potential in security applications and traditional banks are moving into the blockchain direction to provide better security for themselves, their customers, and their backers. While blockchain and cryptocurrencies are technologies that are still maturing, that they are not the hotbeds of fraud that some make them out to be.
The reason blockchain is so popular with enterprises and banks (over 70% of Fortune 500 companies are working on their own blockchain platforms and applications) is the distributed ledger system which provides a total transparency into transactions as well as the mechanism of smart contracts, which helps optimize many industries, including finance, IoT, supply chain, healthcare and many others. Blockchain adds an unbeatable security layer to transactions because the system is based on the premise that no one can tamper with the data without the system detecting such attempt.
- There’s no point in banning cryptocurrency by the government, as the government cannot ban all the technologies and instruments that may be misused by criminals – and I suspect that’s why the Bank of England hasn’t banned cryptocurrencies while it did issue warnings to citizens about the dangers of criminal activities associated with the cryptocurrencies.
- While some governments like the US preemptively banned ICOs (Initial Coin Offerings), there have been attempts by other governments, such as Estonia, to establish their own cryptocurrencies.