Government And Large Financial Institutions - 1937 Words

Research suggests that government and large financial institutions should not be allowed to regulate cryptocurrency, because eventually it will change cryptocurrency to mirror our current paper currency system, and ultimately remove the freedom and anonymity associated with the use of cryptocurrency. The use of Cryptocurrency has become more prevalent across the globe. Regulation seems like the next logical step in evolution and legitimacy, but this will ultimately lead to large financial institutions and government establishing the standards and determining the value. At that stage cryptocurrency may still be categorized as a decentralized form of currency, but the behavior will be that of a centralized system overseen by the same institutions who govern our monetary systems today. Many people think of cryptocurrency as a new and innovative payment system, yet it’s much like forms of money that the world has seen in the past, before governments and central banks exerted their control. In many ways, cryptocurrency completes the cycle started when money began to take hold in the Renaissance, when value and control was not determined by any government but rather by the issuers of notes and the customers who used those notes. One of the most popular cryptocurrencies available is Bitcoin. Bitcoin is regulated differently in the People’s Republic of China (PRC), Canada, and the United States, and no country has currently backed Bitcoin. Launched in 2009, and founded by SatoshiShow MoreRelatedWhy A Company Is Big Enough997 Words   |  4 Pagesbenefits of having large institutions along with the problems that come with them. It will also mention the amount of concentration in the banking industry, the size of the firms and the market share they represent. 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The effect of the crisis influenced not only AmericaRead MoreNotes On Credit Default Swaps1401 Words   |  6 PagesCredit Default Swaps Another financial vehicle that could be problematic was CDS (credit default swap). CDS is a financial derivative works like insurance on securities. The underwriter is obligated to pay a pre-determined fee to counterparty if a certain security default. In return, underwriters charge a fee as compensation. CDS can be used to hedge against risks. However there are still some difference between a CDS and an insurance contract. The CDS does not require buyers to actually hold underlying