In A New Twist The Feds Like Cryptocurrencies And Blockchain Tech
Here is the explanation of why the Feds are taking a U-turn in their decision on cryptocurrencies and blockchain. Read the whole story. It explains interesting facts.
Why Blockchain For TheFeds?
The times may be changing as statements as well as position papers from most central banks were thereby generally skeptical of cryptocurrencies. Publishing a study, the Federal Reserve of Saint Louis relates the positive effects of cryptocurrencies for privacy protection. The Federal Reserve author had emphasized the new competitive offering these currencies created exactly even with the precipitous decline in value of Bitcoin, Ethereum, and other currencies because of the way they function and accordingly why they are here to stay. For the same reason, antitrust authorities should welcome cryptocurrencies and blockchain technologies. The Federal reserve research fellow Charles M Kahn in an article said that cryptocurrencies were being held up as an exemplar of a degree of privacy protection which not even the central banks can provide to customers.
Stressing the point Kahn further explains that privacy in payments comes to be desired not just for illegal transactions, whereas for protection from malfeasance or thereby negligence by counterparties or thereby the payments system provider itself. It is the liability of the person making it where the act of payment engages as a consequence it is the parties inserting numerous contractual clauses to limit their liability. Here it creates a real issue because some parties to the transaction are therefore no longer able to support the lawyers’ fees necessary to uphold the agreement. For anyone who doesn’t have access to smart contracts cryptocurrencies solve the problem differently as smart contracts may address this issue thereby automating conflict resolution making it possible for a transaction without revealing the identity.
According to Kahn cryptocurrencies above all are a reaction to fears of privacy invasion whether by governments or big companies and instead of following the Cambridge Analytica as well as fake news revelations that they are hearing more and more opinions expressing concerns. Set to protect private citizens are the General Data Protection Regulation whereas in practice more and more individuals turn to payments technologies for privacy protection in specific transactions as for cryptocurrencies it provides alternative solution competing directly with what the market currently offers.
To Account For The Consequence: Blockchain Is Good For Competition As Also Consumers
Being the least among many blockchain applications cryptocurrencies come with the diffusion of data thereby in a decentralized network independently verified by some or all of the network’s participating stakeholders as the fact is precisely the aspect of the technology that is providing privacy protection thereby competing with applications outside the blockchain by offering a different kind of service.
Underlying their take the Fed of St. Louis’ study says that as the privacy needs are different in type and degree, they should expect a variety of platforms thereafter to emerge for specific purposes and they should expect the continued competition between the traditional and the start-up providers. Therefore, how can we not love variety where in an era of antitrust authorities they are increasingly interested in consumers’ privacy as cryptocurrencies more generally blockchains are here to offer thereafter much more effective protection that is more than an antitrust law and/or the GDPR combined.
Even though they don’t say a word these agencies should be happy about that where silence could lead to flawed judgments because ignoring the speed of the blockchain development with increasingly varied use leading to misjudge the real nature of the competitive field. They tend to engage in more and more procedures as privacy is seen as an antitrust concern they ignore the existence of blockchain as it is providing an answer to the issue, it can’t be accordingly said that the market is failing as without a market failure those antitrust authorities intervention is not legitimate.
What Roles Of The Fed And Antitrust Agencies Could Thereby Change?
Leading to changes in the role of agencies, the new privacy offering from blockchain technologies is as stressed by the Fed, it is no longer in privacy provision that the future of those central banks and the payments authorities are holding the ring as most of the different payment platforms offer solutions appropriate to different niches as the different mixes of expenses and safety comes with the attention that is too different parts of the public’s demand as also for privacy. Criticizing the expanding role of central banks in enforcing as well as ensuring privacy online some constituencies as those banks would thereby even harder pressed in case, they handled tasks themselves instead of trying to relinquish it to the network.
Applying to antitrust authorities is the same where it is not judging the business model of digital companies as it should be and what degree of privacy protection they should offer as their role helps ensure alternatives do exist whereas blockchain can be deployed without misinformed regulation to slow it down as also these agencies are then more vocal about the benefits of cryptocurrencies and blockchain as advice governments not to prevent them.
Ultimately it is that as even a Fed is now pro-cryptocurrencies also after all antitrust regulators should, therefore, jump onto the wagon without fear while it creates a new alternative offering real privacy protections ultimately putting more power in the hands of consumers. In case antitrust agencies can’t recognize that then they will soon ask themselves who are they protecting really?