Vatican Calls for Increased Regulation of Cryptocurrencies
The bitcoin sector needs more regulation, according to the Vatican. Because of its increasing usage in illegal migration and abuse, the rationale stated was that it was a threat to public safety. Msgr. Janusz Urbanczyk, the Vatican’s official envoy to UN agencies in Vienna, made the remark on October 14th.
Because cryptocurrencies offer privacy, Msgr. Urbanczyk said in her statement that the practice of using cash to avoid detection has now gone online. If you’re sending money to someone else, you may be required to identify yourself as the sender or recipient. However, certain cryptocurrency platforms and cryptocurrency – related service providers do not need this.
Because of this, money laundering and other criminal activities will likely grow. At a time when governments across the globe are working to safeguard their people from the purported dangers of bitcoin usage, this development is particularly significant. Criminals have taken use of the anonymity offered by most cryptocurrencies in order to launder money, transact weapons transactions, and engage in human and drug trafficking.
According to Msgr. Urbanczyk, technological advances are like a “two-edged sword,” since although crypto may be used for illicit activities, people can utilize some of these advancements to better grasp the dangers of smuggling and report suspicious instances. In addition, the Vatican’s representative urged public and commercial organizations to guarantee the security of technological goods and solutions created in the future.
The necessity for more openness in the digital asset sector, as well as greater public knowledge of smuggling and measures to stop it, was also emphasized by him. According to him, migration should be “more secure, orderly and regular.”
He added that “to increase awareness of their threats and educate consumers and recipients in the appropriate utilization of digital assets, information campaigns and structured learning programs should be supported both locally and globally” to help stop “smuggling and safety of migrants, especially those in need,” Msgr. Urbanczyk concluded.
Governments across the world have responded to this growing tendency by cracking down on cryptocurrencies, using Bitcoin as an illustration. For instance, all cryptocurrency mining and trades have been outlawed in China.
To offer people with the same advantages of digital payment in a more controlled way, several countries are developing or considering the introduction of Central Bank Digital Currencies (CBDCs).
Around 110 nations are now investigating the use of cryptocurrencies, as per the IMF. Over half of the IMF’s member countries are represented by this group. The Bahamas was the foremost country to formally establish a CBDC, while other large economies are still conducting research and pilot programs.
As of September, the banking giant HSBC said it was collaborating with eight different countries on CBDC initiatives. There are a number of central banks across the world trying to determine if a digital currency is feasible. These include the central banks of the UK, France, Canada, Singapore, China, Hong Kong, Thailand, and the Emirates (UAE).
In CBDC research, China is likely to be leading several other large countries. There have been reports of CBDC pilot projects in Sweden, Lithuania, Ukraine, Singapore, Thailand, China, Hong Kong, South Korea, Saudi Arabia, and the United Arab Emirates.