BLOCKCHAIN AND CRYPTOCURRENCY

CENTRAL BANK DIGITAL CURRENCY

A Prediction.

Government regulation via CBDC (Centralised Bank Digital Currency) in each sovereign territory, will introduce qualitative rules that exchanges must meet in order to interface for data interchange and become interoperable to FIAT CBDC.

If an exchange is not approved under the new rules, which obviously includes AML/KYC and stringent monitoring access, then the exchange loses the capacity to trade legitimately into FIAT.

Once a cryptocurrency can no longer shift from its digital form into digital FIAT, the digital currency becomes a virtual currency, trapped within its own network and can no longer call itself a cryptocurrency. This has already happened cryptocurrencies, that lost their value due to being delisted from exchanges. Case in point OneCoin.

I predicted CBDC several years ago.

Those who attempt compliance, will be burdened with significant costs, specifically aimed to make compliance accessible to institutions who can afford this.

The pressure of compliance and registration, will create an environment within which exchanges will consolidate and many will simply become defunct.

As CBDC takes over the role of the pioneering cryptocurrencies, many of the more savvy operators will align with government institutions to become service vendors to implement CBDC infrastructure. Shifting from the role of a currency vendor, to more like the role of EFTPOS…