Francisco Blanch, the Managing Director of Bank of America feels that Bitcoin needs to be brought under regulatory shackles which in turn will boost up its success story to a global platform. This will help Bitcoin claim it’s must deserved position of becoming a pledgeable collateral which has been in pipeline for quite some time. Inherent risks associated with the usage of digital currencies like hacking, fraud, theft, hacking, limited acceptance, new protocol adoption calls for the regulation to be implemented so that these forms of digital currencies can gain widespread acceptance.
Market movers like Morgan Stanley have supported Blanch’s stand. However taking a look back numerous efforts have already been taken by government departments worldwide. But all of them faced the same devastating end. Impossible conventional regulations of cryptocurrencies might be a big reason behind such failure.
Presently government bodies like the Securities Exchange Commission (SEC) are working hard to usher in regulation among the cryptocurrency service providers in line with wallet services and exchanges. Tax can be levied on virtual currencies but the success of such implementation is also highly doubtful. Recently the consumption tax levied on Bitcoins has been withdrawn by the Japanese government. However there exists high possibilities of stringent taxation guidelines being introduced in the cryptocurrency plethora in near future.
Profound use of digital currency which is projected to grow in coming years might leave banks to bite the dust. This is the major reason behind organisations like Morgan Stanley and Bank of America opposing the use of digital currencies. Yet in spite of initial hesitation several banks are slowly warming up to this new trend recently.
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