Can Digital Currencies Ever Be Regulated?
It often surprises first time digital currency users that the environment within that innovative industry is a completely unregulated one however that fact can often be enough to put off a lot of people from ever choosing to use any type of digital currencies of course!
The thing to keep in mind however with blockchain and the way in which all cryptocurrencies have been designed is such that it is a highly secure system for moving money around with a lot of safeguards in place to ensure no counterfeit coins can ever be put into the system.
Unlike fiat currencies where there is always going to be the very real risk you could be given a counterfeit coin or banknote, that is something that is impossible to do with all digital currencies due to the checks and double checks performed on the ledger of each of them.
As such one thing to be aware of is that digital currencies and the entire structure of them are much more secure and safe than nay fiat currencies, however it is the value of digital currencies and the volatility of those values that many people to find hard to fathom out and get their heads around!
As digital currencies are not backed by any Government, any precious method or in fact anything, then it is impossible for anyone to have a system in palace whereby they can be regulated, as they have been designed to be completely anonymous currencies and ones that anyone can use for any purpose they wish to use them for.
Who Can Use Digital Currencies?
There are no restrictions in place in regards to how can use any digital currency and as such if you do wish to make use of any of them to move money around anonymously and in a highly secure way then you are always going to be free to do just that.
What you are going to have to ensure you have are all of the required things in palace to allow you to buy and store you digital currencies.
As such you are going to have to get yourself a digital currency as that is where you are going to be able to move your digital currencies around and will use that wallet to send digital currencies where you wish to send them or to receive any digital currencies you have bought or people are sending you for whatever purpose.
It is also important that you do find a digital currency exchange, which is where you buy and sell all digital currencies that are going to be offering you reasonable fees, for there can be some very high fees associated with using many different digital wallets that can and do very quickly add up!
National Bans Looking at Launching Digital Currencies
I did very recently read with great interest that the Bank of England decided to commission a report into whether it would be both feasible and practical for them to launch a digital currency of their own, but one that forms part of the GBP fiat currency!
The very fact that a major and very well respected national bank has been looking into the practicalities of launching their own digital currency is interesting, for there is one thing those banks are always eager to do and that is to cut costs.
The cost of running a digital currency is of course minimal as are the day to day costs for users of those digital currencies but they do of course offer very high levels of security which is something many bans are going to be very interested in.
Obviously it is far too early to tell if the Bank of England or for that matter any other banking institution is going to eventually one day launch their own digital currencies, but above all else it does prove that digital currencies are becoming respected and they are high safe and secure peer to peer money transfer systems.
But one thing I can imagine when and if any national bank or country does launch their own digital currencies and that is there will still more people using those that have no connection with any bank or government, as that was the whole idea of them being launched in the very first place.
I will of course let you know how this story rumbles on, but I am fairly confident it is going to be years if not decades before any country of the world does finally get around to launching a digital currency.
David is a forex trader and writer who has spent the last few years giving his opinion and spreading news about oncoming markets and trading tips. Besides from being a trader he is also a lifelong Everton fan and enjoys spending free time watching his beloved team in the premier league.