Bitcoin is the biggest cryptocurrency in the world. And presently, it is not under the regulation of the government of any country. But very soon, it might be. Commenting on the same, the CEO of Twitter and Square, Jack Dorsey, said he isn’t pleased about regulating Bitcoin. The CEO also believes that this move may hurt Square and will not be of much help to the government. This means in an attempt to make the transactions of Bitcoins more visible, this move might reduce it even more.
How will regulating Bitcoin affect users?
With the government regulating Bitcoin, the most affected thing will be user privacy. This is because companies like Square will have to collect users’ physical addresses and names involved in large transactions. This will lead to users bypassing such financial companies, which will lead to their losses. Though the idea behind regulating the currency is good, the victims will be financial institutions like Square. Square wrote that it would even have to collect data from users that have not opted in or signed up for their service.
The CEO gave a very good example in the letter. Lets’s say a parent is sending $4000 every month to their daughter through Bitcoin. Even in this case, Square will have to collect the daughter’s name and physical address even if she is using a private bitcoin wallet on her PC. So that means even if users are not using Square’s service, their data will be collected.
Does Bitcoin regulation solve anything?
Probably not! Jack Dorsey also explained this in the letter. He said that regulating crypto transactions in the US and forcing companies to comply will end up pushing users to use unregulated wallets that don’t come under US jurisdiction. This will, in turn, result in less transparency as opposed to the government’s motive. And this data collection move by the government will also stop users from using Square as extensively as they do now. Hence hampering their idea of using Bitcoin as a way of economic development.
Let’s see whether the proposal by Jack Dorsey is taken into account, and the government plans not to regulate Bitcoin. Do you think that regulating Bitcoin will actually be useful for the government? Let us know in the comments below. Also, if you found our content detailed and informative, do like it and share it with your friends.