Crypto has been around for a while now but it’s only this recent that it’s gaining traction with governments worldwide due to its potential impact on global politics and economics — especially those involving superpower nations like the USA, Russia and China who have been criticized by many as being too powerful already: they’re not going anywhere, anytime soon either!
When you look at some countries’ economic growth rates over time (and compare them with others) you’ll notice something interesting. Some tend towards more economic success than others do, although there are no guarantees about what will happen next year or even next decade — this applies to the digital economy as well. As more people slowly integrate the use of cryptocurrency for everyday transactions, the government is also making an effort to regulate it to protect consumers and the country’s economy.
Crypto Influence in Russia
Russia is a country that has been heavily influenced by cryptocurrency. In fact, the level of regulation within Russia is quite high compared to other countries around the world.
The country has several laws relating to cryptocurrencies and blockchain technology, notably:
- The Digital Economy Law — this law regulates how companies can use digital currencies in their operations. It also establishes rules for any new digital assets created by companies or individuals; it allows them to be traded on exchanges and makes sure they’re used for legal purposes only (e.g., buying real estate).
- The Banking Corruption Anti-Money-Laundering Act — this act prohibits banks from working with money laundering organizations or terrorist organizations through financial transactions in any way whatsoever; those who violate this law will face fines up to $50 million per violation!
Crypto Influence in China
While China remains the world leader in trade and commerce, it is surprising that the country has not been able to translate its prowess into crypto dominance. The country has the strictest crypto regulation around the world. All crypto-related activities are banned in the country. Further strict measures were imposed in September 2021, including further scrutiny of the companies with a history of using crypto in their transactions.
While the rest of the world is slowly embracing crypto, China is a different story. Blockchain companies who have started their business in the country before the ban have now completely relocated to countries where mass-adoption of crypto is evident like Singapore and Japan. Experts believe that this ban will not be lifted anytime soon as China’s government is heavily tracking every transaction if it contains traces of blockchain.
Crypto Influence in the USA
In 2018, over 7 million Americans are reported to be using cryptocurrencies for everyday transactions — a 5% increase from 2017’s adoption rate. The U.S., along with Canada and South Korea have been considered crypto leaders in terms of their adoption rates. This year, there is a significant increase in those countries’ adoption rates as more applications are being accessible to the people.
In the U.S., the crypto craze has been hyped up by celebrities, sports superstars, and even politicians. In 2018 alone, President Trump declared that he would be “the best [cryptocurrency investor] ever” and vowed to create an “international cryptocurrency bureau to promote healthy competition within the industry.”
The US government has also regulated its own banks such as Bank of America and JP Morgan Chase by requiring them to comply with anti-money laundering laws for cryptocurrencies and ICOs (initial coin offerings). This is all part of what some experts call a “Crypto War on Cash.”
The U.S. Congress has been conducting public hearings regarding the full regulation of cryptocurrencies. C-level executives from different crypto companies were invited to speak and explain to the masses how crypto works, what are its benefits, its drawbacks and how it could help boost the economy.
Crypto Influence in Japan
Japan has been considered the leading nation when it comes to cryptocurrency adoption for a while now. The country’s positive attitude towards digital currency has made it one of the most fertile grounds for crypto mass adoption.
Japan has been one of the first countries to legalize cryptocurrencies as legal tender and even created its own cryptocurrency called J-Coin (which is currently defunct). In addition to these efforts, there are numerous other initiatives underway that will likely lead to greater adoption down the road:
- The Japanese government announced plans to create its own stablecoin pegged directly against fiat currency; this could help bring more transactions into cryptocurrency space by allowing users to convert their crypto holdings into yen or dollars at will through bank transfers or debit cards.
- The Japanese Payment Services Act provides a regulatory framework for payment services and regards crypto assets as payment methods. Owning and investing in cryptocurrencies enjoys no restrictions.
How Crypto Affects Superpower Nations?
It’s a good question to ask because many of these countries are at the peak of their power and influence. The slowly shifting of economies from fiat to digital has become prevalent, and the best way to keep up with the changing world is by embracing it. Not everyone may agree to regulating crypto, but it is the best way to protect the people, the interest of the country, and avoid fraudulent activities from happening.
Unlike the superpower nations mentioned above that have stable and prosperous economies, some South American countries are currently making conscious efforts to regulate crypto to help battle their collapsing economy and the aggressive fluctuations of their native currency. Adopting crypto might be the option for now, but it is not a viable option for the long term as cryptocurrencies are highly volatile and has a lot of contributing factors for its fluctuating price, which includes pop culture, social media presence, and the movements of other cryptos.
At the moment, regulating cryptocurrencies is what most governments are doing to achieve financial inclusivity from the marginalized sectors as cryptos do not rely on banks for their transactions.
