Despite at times the dramatic lows and highs in crypto, there is plenty of evidence to suggest that the crypto industry is here to stay.
Nations are actively making strides in the cryptocurrency world. Testing digital currencies, experimenting with NFTs, even adopting crypto as a national currency all suggest that world governments are seriously invested in crypto and dedicated to exploring its future. Let’s take a look at some recent examples to support this.
US Treasury Head Prioritizes Crypto Threats
Cryptocurrency isn’t without its flaws. Cases of illicit financing in money laundering schemes are common, but world leaders recognize these threats to security and are prepared to deal with them. In the United States for example, Biden’s nominee for Secretary of the Treasury Department Brian Nelson said he plans to make regulating cryptocurrencies a priority.
Working from the framework laid down by the Anti-Money Laundering Act of 2020, Nelson plans to implement the legislation to stop criminal activity in the crypto sphere.
El Salvador Accepts Bitcoin as National Currency
Recently, the Republic of El Salvador became the first country to adopt Bitcoin as a second natural currency. This means that Bitcoin is now on the same level as the US dollar in El Salvador; they adopted the dollar as their official currency in 2001. Businesses must now accept BTC as payment for goods and services as they would the dollar. What’s more, the government of El Salvador has set up a development bank that will let merchants convert earned BTC into USD.
Israel Completes Digital Currency Test Pilot
Israel recently completed a test pilot CBDC in the form of a digital shekel (Israeli currency). Despite the hesitation, the Bank of Israel (BOI) deputy governor said they decided to go ahead with testing, seeing that other countries were already doing the same. He commented that the use of a digital shekel would make cross-border transactions easier, reduce dependence on cash, and allow citizens to make payments in a more private manner.
Specifically, the pilot program involved transferring digital shekels between wallets based on Ethereum’s structure. The test also included the successful NFT transaction of car ownership, free of third-party verification. These are just a few examples of how the digital shekel could be used in Israel’s future economy, including smart contracts and programmable money.
Regardless of market fluctuations, governments around the world continue to explore crypto’s value in an evolving financial market. Their interest and investment in the industry is a major sign: crypto isn’t going anywhere. The adoption of BTC and the creation of new financial institutions to ensure its future success highlight El Salvador’s commitment to crypto and belief in its potential. As other nations continue to test their own digital currencies, it will be interesting to see which adopts crypto next.
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