Headlines

•Cryptocurrencies to escape Central Bank Control

• Different strategies to establish rules

•Consequences of government control trials

Introduction

During many years after internet and computer discovering, developed countries tried to replace fiat (fiduciary finance). After many trials the dream starts to become reality with Bitcoin invention in 2008 by Satoshi Nakamoto. Using it as currency began in 2009. This digital financial instrument called cryptocurrencies or crypto exchanged and recorded on block chains which is public ledgers. Central intermediaries like commercial banks, central banks are not required during transactions that are public but pseudonymous for users. This topic figures out how establishing different strategies and rules by government and central bank on block chains which tries to escape for, bring two major consequences : discrimination and racism.

I. Cryptocurrencies to escape Central Bank Control

Traditional financial system as we known before through years has been made mincemeat of it by cryptocurrency, succession of bits that became universal. It increases and decreases any time, make it more volatile currency. The value of capitalization changed in 2 years. It decreases from 3 trillion dollars in November 2021 to around 1. 1 trillion in May 2023.

The trust which has been foundation of ancient financial system has been replaced by participation. Now it's a deFi (decentralized finance) powered by custody of crypto into wallets or accounts for users who are owners of hosting services as exchanges, payment platforms and so on. Government doesn't want to be flabbergasted by growing of criminality, financial disorders and want to have cryptocurrency for breakfast.

II. Different strategies to establish rules

Actually it doesn't exist comprehensive regulatory framework for crypto but controllers have to apply existing regulatory frameworks when it's applicable to crypto. Two main of these frameworks are SEC ( Securities and Exchange Commission) and CFTC ( Commodity Futures Trading Commission). In other way digital currency is issued and managed by the premise of Central Bank digital currencies (CBDCs) for anticipating benefits of cryptocurrencies. The role of these regulations is to fight criminality, money laundering, illegal purchase of weapons etc. Control can kill control.

III. Consequences of government control trials

All platforms control exist as frameworks which are different and applicable if necessary. By these government controls trials on DeFi injustice has been created. Only two consequences of this injustice are described in this part of article : discrimination and racism.

  1. Discrimination : Until now few countries are authorized to use cryptocurrencies. Its exchanges are considered illegal inside some states. Cryptocurrency is global only for experts but less accessible for poor and inexperiment people.

  2. Racism : Some categories of people create and control their own blockchains. Behind algorithm there are watching over, extortions of crypto etc. Cybercriminal operates behind the scene.

Conclusion

Finally the world found what seems like miracle cure in financial system. Alternative to fiduciary finance becomes more and more popular but its flexibility and freedom put it on level of instrument which hurts seriously state institutions to know Governments because of criminality, money laundering, weapons illegal purchase proliferation. But these control trials create others disaster consequences which are discrimination and racism.