Guest post by Philip Salter from Genesis Mining
Philip is the Head of Mining Operations of Genesis Mining.
Whether you love it or hate it, cryptocurrency is here to stay.
Managed by decentralized networks spread out across the entire globe, the world’s cryptocurrencies are uniquely useful and polarizing at the same time. There is no single uniform international legislation to designate how digital currency can and can’t be used, so that leaves each country to its own devices. Where some countries might embrace this financial technology as the latest and greatest economic engine for the future, there are others who want nothing to do with it. Some have even criminalized it.
Whatever reason a country gives for banning crypto, it mostly about maintaining control of its own financial system.
Saudi Arabia has banned Bitcoin for religious reasons, saying it’s incompatible with Muslim law. Iceland banned Bitcoin to protect against too much money leaving the island nation’s borders. The Bolivian government banned it on the simple rationale that it doesn’t control it.
Ecuador has been at war with popular cryptocurrencies since 2014 or so. The country’s central bank issued a damning statement against Bitcoin, saying that BTC has “no backup, because it supports its value in speculation. The financial transactions carried out through Bitcoin are not controlled, supervised, or regulated by any entity in Ecuador, which is why its use represents a financial risk for those who use it.” The Ecuadorian powers that be want people to stick to approved financial systems.
It certainly bears mentioning that Ecuador happened to issue its own national cryptocurrency in 2015 as a compliant system that’s tied to the local currency and adds convenience to everyday transactions.