When BitLicense is debuting in Bitcoin regulations, the voice of discontent is coming up not just from an average supporter of the digital currency but also from Bitcoin Foundation founding director Jon Matonis. In a talk he defended the virtual currency and admitted that Bitcoin is doing more good than harm despite its popularity with fraudsters.
Elaborating his point, Jon Matonis says the use of the virtual currency by fraudsters is a small price to pay. He also admitted that the use of the virtual currency by fraudsters is a small price to pay. The digital currency came to attack when the executive director of New Zealand cyber-safety organization NetSafe, Martin Cocker said he would not be sad to see Bitcoin’s demise.
Martin Cocker is not the only critic who has been voicing against the digital currency as similar views have been presented by several persons and economists. Nobel laureate Paul Krugman too has shown in the past that he wants Bitcoin to die. Most of the critics of Bitcoin think that Bitcoin is dangerous as transactions are impossible to trace.
According to them Bitcoin is being favored by cyber-criminals as a means of payment when extorting money in “ransomware” scams. Jon Matonis says that it is but natural that this aspect is being highlighted more than the features that are more important. He admits that Bitcoin is doing far more great thing than the harm fraudsters doing.
However, fraudsters are being given higher coverage and the critics are cherry picking this to malign Bitcoin. Matonis said Bitcoins were the digital equivalent of cash and having such a “surveillance-proof currency” had big advantages in countries such as Argentina and China, if not New Zealand.
Excessive Regulations Can push Bitcoin Companies to Relocate Elsewhere
According to Matonis in Argentina, people are not allowed to purchase hard currency or gold. In China, citizens live under immoral capital controls. At the same time he stressed that there was no way to address the fraud issue as any medium of exchange is going to be subject to abuse. It’s hard to eliminate that as the protocol of what Bitcoin is, cannot be changed.
Matonis also expressed his views on the much-anticipated rules that are going to be imposed on Bitcoin exchanges and uses. He said that was unnecessary and such rules could push Bitcoin companies to other countries and jurisdictions such as Luxembourg and the Isle of Man.
He also said that if governments and regulators aren’t careful, they are going to regulate themselves out of business opportunities.
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