While cryptocurrency has been around since 2009, the last several years have skyrocketed it into the public’s eye. Now both cryptocurrency and blockchain are quickly being seen as the potential future of currency, payment processes, and even the internet with Web 3.0.
But there are still a lot of unanswered questions surrounding regulations and acceptance of crypto within governments and organizations. In fact, recent legislation seeks to define several aspects of cryptocurrency. Governments are looking at how to tax the many different assets and uses of crypto, leaving many crypto-enthusiasts pondering the future.
But what will the future of cryptocurrency look like? Several large corporations have bought into the idea of using cryptocurrency as a store of value, even purchasing tokens themselves to prepare for potential acceptance. Tesla led the charge when they bought over a billion dollars in Bitcoin, and since then, several other companies have joined them. Even the eCommerce juggernaut Amazon is looking into the use of cryptocurrency.
Many organizations, investors, and individuals have accepted the fact that most cryptocurrencies are a store of value. That means that it’s seen as an asset that can retain value and be traded, bought, or sold, or exchange for other forms of value, goods, or services.
With that in mind, governments could begin recognizing certain cryptos as currency. Introducing them to a slew of standards, regulations, and laws. Oftentimes, these laws introduce taxes to ensure the government gets its piece of the pie. Recognizing certain cryptocurrencies as a standalone currency may be a boon for crypto-investors and enthusiasts. Unfortunately, it will most certainly encourage governments to step in even further.
For example, they may find their way onto the FOREX marketplace, an arguably larger market than current exchanges. It would also mean that government institutions like the Internal Revenue Service (IRS) or Canda Revenue Agency (CRA) would more than likely accept it.
This would open the world of cryptocurrency up to a wide variety of possibilities, including paying your taxes with crypto. While nobody likes to pay taxes, accepting crypto directly could save time and money by removing the requirement to liquidate your stake. Rather than having to exchange your cryptocurrency for FIAT, you could simply manage and hold your value wherever you choose. No more juggling between FIAT, cryptocurrency, or exchanges.
While the future of cryptocurrency remains unclear, it continues to grow in acceptance and popularity. Soon governments will be forced to deal with its ever-growing influence, and hopefully, that will lead to some revolutionary processes and laws being established.
Cryptocurrency has come a long way, but there is still quite a ways to go before it is truly implemented into our daily lives. However, with continued support and encouragement, we can make cryptocurrency a mainstay piece of society.