How Politicians Have Encouraged Growth in the Crypto Sector
Cryptocurrency is a divisive topic among politicians, investors, and regulators in the Fintech sector. The biggest concern to political leaders is if crypto offers a utopian alternative to the traditional finance system, or is it your everyday algorithmic evil aimed at enriching venture capitalists while defrauding unsuspecting consumers?
Political leaders pledge their allegiance to the people, and they have no alternative but to work for their electorates. The crypto industry is enjoying massive support from people worldwide, which is reflected in what politicians do as well.
The growth of the crypto sector is largely influenced by enabling frameworks in different countries. Politicians can influence policies that can enhance the growth of the digital coins industry. Without such enabling policies, the use of crypto is impeded, and people are left on their own to decide whether they will invest in crypto or not.
So, what are the politicians doing to encourage growth in the crypto sector?
Adopting the use of Crypto as a Legal Tender
Yes, no lies, no half-truths. Cryptocurrency is being used as a legal tender in some countries, and the list will likely grow in 2022.
For instance, El Salvador has embraced Bitcoin as a legal tender.
The move has been made possible by the tech-savvy president who has embraced the innovation. This means that anyone in the country can use digital coins to pay for products or services.
As a result, El Salvador is likely to benefit from the opportunities brought about by such kind of investment. In addition, the country has gone into history books as a key player in digital transformation from traditional currency to crypto.
Formulating laws that allow the use of crypto in a country can be an effective way of promoting the sector’s growth. Canada is one of the countries trying to lobby for the recognition of crypto assets. A bill has been drafted that compels the Minister of Finance to develop a regulatory framework on crypto assets.
In the United States, Arizona is considering adding Bitcoin to the list of instruments that are recognized as legal tenders. If enacted into law, it will make it legal for Bitcoin to be used in transactions such as paying taxes, debts, and public charges.
Would you be surprised to hear that your president or prime minister holds or trades crypto?
Well, you must have heard of Cynthia Lummis, a U.S. senator who owns about $250,000 in BTC, or Patrick Toomey, who has shares in Bitcoin and Ethereum trusts.
Some politicians are even opting to be paid in Bitcoin, a case in point being Francis Suarez, the mayor of Miami.
Politicians holding crypto instills confidence in their followers, which translates to more people investing in crypto.
Cryptocurrencies have not just revolutionized the world of finance; they have steered major changes, which might impact the way we use money forever. Crypto is now a legal tender (in some instances), a speculative class of assets, and a product of imagination that has no obvious connection to the real economy.
As credible platforms such as IXFI continue to offer services to people and institutions who want to hold crypto balances, trade, or borrow to speculate in cryptocurrency, the impact of crypto continues to get spread across the globe. Politicians are obliged to pay attention and support the growth of the crypto industry, as it continues to disrupt the financial sector for the benefit of the people.
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