Bitcoin price has experienced a lot of movement since the turn of 2017 while at the same time, governments and central banks have become more vocal on matters relating to the disruptive technology.
Barely does a day go by without a government statement on Blockchain, Bitcoin or cryptocurrencies. It is either the withdrawal of an initial ban, the introduction of a new ban, investigating the regulation or possible application of the technology among several other actions.
Apparently, governments seem to be under pressure to take a stand on Bitcoin and Blockchain, and this may have been the main reason why their regulators keep fluffing their lines over and over.
Blockchain does not panic
One major factor that cannot be overlooked at this point is the rate of advancement within the Blockchain ecosystem. Every new day gives birth to another innovation or a new startup with big promise.
Considering the independence of the Blockchain industry, players seem to ignore the perceived lack of support from government authorities so far. At the same time, events within the ecosystem create the idea of a self-sufficient and self-sustaining community. This philosophy seems to generate a level of apprehension on the side of governments, hence their desperation to find relevance within the system.
How governments are going about their quest for relevance or not is entirely another issue. Looking at the actions of different regulatory authorities across the globe, several contradicting statements have been released, sometimes even by a particular government at short intervals, as observed in the UAE and Nigeria. These actions suggest a clear case of working under pressure or playing catch-up.
Bitcoin price matters
President of Crypto Consultant, Jason Cassidy, identifies Bitcoin price as a major factor which attracts the attention of governments.
“The price action of Bitcoin and other cryptocurrencies draws the attention of governments. From this perspective, expect more policy discussion during these price runs as the topic consistently hits the radar of officials and central bankers.”
According to Cassidy, governments and banks understand that we are now quickly moving into a digital world, and that includes our money. Bitcoin and Blockchain have become hot topics over the last few years and with that comes some pressure to take a stance.
Cassidy notes that this is a learning process for virtually every traditional institution, therefore it is normal to anticipate an about-face stance over the next few years as political motivations along with general awareness dictate banking and governmental policy.
Towards the end of 2016, the Deputy Governor of the Central Bank of Nigeria, Adebayo Adelabu, implored the National Electronic Fraud Forum (NeFF) to work harder in an environment where players must either learn to swim or sink in the novelty tide of this new technology. This statement clearly suggests that governments have recognized that disruptive technology is here to stay.
Despite the mixed reactions from governments of different nations across the world, one thing that has remained consistent is the progressiveness of the disruptive technology. It is indeed moving and it is moving very fast.