Will Digital Money Ever Grow Up?

What is digital money or "cryptocurrency", you may only know by the name "BitCoin"?

Here is a definition:

• a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.

Money is ... complicated and has always been managed by the government of the country issuing the money.  Since the Bretton Woods agreement following World War II the United States Dollar has been the preferred money of the world, though it doesn't replace the local currency (yes that is a simplified statement).

What about money that knows no political boundaries?

Enter cryptocurrency, one example of which is the widely known "BitCoin".

This is a very immature technology that has enormous potential ramifications.  The power of this tech is growing.  With that growth and its impact it has gained the attention of law enforcement.

Here is the full story:

https://www.technologyreview.com/s/612147/new-yorks-damning-report-on-crypto-exchanges-will-be-good-for-the-industry/

Here is a snippet from the piece:

A fight is brewing over the future of the cryptocurrency exchange, and its outcome will figure prominently in how the industry evolves. On one side are the purists, who believe that crypto exchanges—the on- and off-ramps between the world of crypto and the traditional financial system—can and should remain free of government meddling. On the other side are government regulators, charged with protecting investors from fraud.

This week the New York attorney general’s office landed a powerful blow in favor of the regulators, with a new report that illuminates the shadowy inner workings of 10 popular cryptocurrency exchanges.

It kind of sounds like the inmates are running the asylum so to speak, for now.  If cryptocurrencies are going to grow up they'll need more adults in the room.

Happy Reading,

J.W. Gant