The crypto assets market has been quite affected over the last year, partly due to the constant intentions of regulating crypto assets and how transactions are executed. On the other hand, the non-existence of a concept agreed upon by the organizations about cryptocurrencies makes the situation that it is not adopted massively even more limiting. Traders are using the bitcoin revolution to trade cryptos as this platform is safe and efficient.
The progress regarding establishing an effective regulation of the cryptocurrency market has been limited by the lack of unification of criteria, mainly between the States and each country's financial and banking institutions.
All this is happening at a time when companies in the Fintech sector are looking forward to promoting the creation of companies of this type that allow efficient and timely interoperability.
Due to the diversity of characteristics and usability of cryptocurrencies, it has been complex to establish their use and benefits. It is where the main interest lies in protecting the interests of individuals so that once a concept is based, counterproductive effects are not generated that destabilize the global market.
Position of central banks against digital currencies:
The debates that have originated based on cryptocurrencies and their regulation are extensive since all those involved handle various criteria that must be analyzed for the subsequent application of a financial system based on digital currencies or crypto activities.
In the specific case of cryptocurrencies, many often wonder what they are, their use, and what impact they have on the world's economies? Moreover, what would a massive adoption of these financial instruments look like?
The truth is that many questions arise around digital currencies. They are tools created over a decade ago and have not managed to create a stable scenario that places them as the ideal option to replace Fiat currencies.
It is crucial to evaluate the use and management of cryptocurrencies from the particular to the general, which includes investors on a smaller scale and the adoption of cryptocurrencies such as Bitcoin by countries that consider the future of economies to rest on an utterly financial market digitized.
Over time, government authorities and international and national financial institutions need to agree on the timely treatment of digital currencies become imperative.
Although there are already several regulations and laws worldwide where countries establish the use and legality of digital financial instruments to carry out national and international operations, Central Banks refuse to be part of this financial market due to the volatility of these digital assets, And the possible consequences of economic destabilization.
Many concerns arise even about the legality of the resources that are transferred through cryptocurrencies, and it is there where more effort is made to prevent money laundering and the illicit use of traditional monetary resources.
Limitations for the regulation of crypto assets:
The active crypto market's growth for a couple of years makes it imperative to control and regulate cryptographic operations.
The fact that digital currencies are listed on the stock market represents a challenge for international organizations in terms of how these operations are being carried out and that there is no one to supervise them but the participants.
There are many interests involved, where the absolute control of the mobilization of money and the elimination of payment of transfer commissions is not profitable for the institutional financial sector.
The problem is generated for several reasons; applying a regulation that regulates and establishes the standards of operation with cryptocurrencies will lead to a rapid evolution of what money currently represents as a traditional currency.
With cryptocurrencies, the money use scheme is broken since products, goods, and services can be acquired with the simple use of a digital asset and with the help of electronic commerce.
The need to have trained and highly prepared personnel on this subject is quite complex due to the newness of the concepts that make up this digital financial system.
On the other hand, it is difficult for financial entities to control thousands of participants who converge daily in the crypto assets market and are not willing to give up their autonomy and decentralization.
Conclusion:
It is evident that the intentions of control do not yield much less when there are economic interests involved; it is where the sum of powers confronts the claims of individuals.
