It was reported recently that the Indian government had considered banning cryptocurrencies. This comes from the angle that its price is depending on speculations. However, one can argue that cryptocurrencies will bring more good than harm to economies, especially for large and low-cost ones.
The middleman concept
On a global scale, cryptocurrencies have the ability to provide a low-cost model for businesses. Like facilitators and platforms like Alibaba and Grab, they are disruptive technologies that function much like middlemen. With these operators, the delivery of services has changed as they become more decentralized, pushing the service providers to the users. One can start looking at cryptocurrencies in the same way.
Pushing the economy the right way
If used properly, the cryptocurrency market can positively contribute to the economy. In fact, governments looking at legalizing digital exchanges could well create new opportunities for businesses as well as bringing in more FDIs (Foreign Direct Investments) along the way. As such, it could be a potential revenue stream. While the returns have yet to be seen, once-conservative governments like Malaysia have since authorized 3 platforms to operate in the country namely Tokenize, SINERGY and Luno. This will pave the way for more exchanges to start applying for these licenses.
The US, Australia and Japan have already started accepting Bitcoins for transactions including paying for meals. This might take a while before it becomes a common way of life but signs are surely showing that we are getting there. Meanwhile, there are still others that are reluctant and could well miss the boat when the big wave comes around. So many have missed it during the e-commerce, ride-sharing and other waves and if they are not ready for the cryptocurrency wave, they could seriously be losing it. It is already happening as we speak.
