Will the legalization of cryptocurrency helps to come out of the global economic

[WHYofficial]

Legalizing cryptocurrency is necessary without giving up the use of traditional money. Otherwise, it will provoke outbreaks of economic crisis, which in scale will be close to the collapse of the US economy in 2008. In this case, the rules governing the action of cryptocurrency should be the same for all countries, so that there are no difficulties in using digital coins in the territory of another state.
So far, the first attempts to legalize digital money occurred in Japan. There, Bitcoin and other crypto coins were not equated to the traditional currency, but were officially allowed to pay for their purchases and services.

[avikz]

Firstly update the subject line of your thread to - Will the legalization of cryptocurrency helps to come out of the global economic crisis? Because I think this is what you mean to say!

the rules governing the action of cryptocurrency should be the same for all countries, so that there are no difficulties in using digital coins in the territory of another state.

That's never going to happen, mark my word! No country will give up the dominance of their own currency to any decentralized digital coins. Probably some countries like Venezuela or Zimbabwe will be interested in doing that but not others. Each country will have different outlook and that's what we call diversity. Each country will have different regulations to regulate cryptos for good. Legalization of cryptos is imminent but that will come in different shape and form for each country. Reaching a global consensus will not be possible due to some backward thinking governments.

I really can't comment whether the legalization of crypto will help in coming out of global economic crisis because the reach of crypto is very little if we are thinking on a global level. Cryptos are just too small in addressing such bigger issues, unless we have some cryptocurrency released by IMF or World Bank. Decentralized cryptos like bitcoin can't scale at that level! 

[Harlot]

Of course it will help a lot of people here thinks that once cryptocurrencies are legalized it would be the end of the industry as it will be managed by a centralized government, the problem here is that they are not thinking about the bigger picture once cryptocurrencies is legalized in majority of the world. Just think of it this way, if they legalized cryptocurrencies it would open up a lot of venue to earn income for their own country as they have made their country more attractive to a growing industry. People who are against the idea are only seeing that cryptocurrencies will now be controlled by the government, but honestly it is our only route for cryptos to be mass adopted.

[vhns222]

It can happen maybe but anyway if there are countries then they would have their own cryptocoins so dont know what could happen as legalization of crypto will change everything.

[buwaytress]

Depends what you mean by legalisation. If making Bitcoin legal means the state gets to have a say in how it's run, or a say in how the network is secured, then no, because clearly, the way states run economies is responsible for the repeated crises of economies. It's been happening for over a century now, almost every decade, with no signs of improving for the long term.

Bitcoin's genesis had that ominous message about bank bailouts, right on the advent of the global economis crisis of that year. We're 10 years ahead of that and heading for yet another crisis, with stock markets falling around us, debt only rising, inflation not abating... Bitcoin doesn't need to be legalised by the very entities and systems its creators blamed for the crap economy.

[joniboini]

If legalization == cryptocurrency as sound money (can be used for payment/exchange) then it might help. When this happens, I doubt it will replace fiat 100%. We will use crypto as a store of value and sometimes cash it out when they need. A key difference is, we can use it without any anxiety. Both crypto & fiat will coexist in most part of the world, I believe. It's hard to imagine government allows themselves to loose control of their own fiat systems.

The current financial systems are flawed because fiat is not really sound, it's not market goods and prone to manipulation by one party. Even government that run the system itself don't trust fiat (they store gold, etc). That's why the crisis happens.

[buwaytress]

If legalization == cryptocurrency as sound money (can be used for payment/exchange) then it might help. When this happens, I doubt it will replace fiat 100%. We will use crypto as a store of value and sometimes cash it out when they need. A key difference is, we can use it without any anxiety. Both crypto & fiat will coexist in most part of the world, I believe. It's hard to imagine government allows themselves to loose control of their own fiat systems.

The current financial systems are flawed because fiat is not really sound, it's not market goods and prone to manipulation by one party. Even government that run the system itself don't trust fiat (they store gold, etc). That's why the crisis happens.

I suppose the earlier examples of Switzerland, Austria and then later Japan in legalizing Bitcoin as "sound money" can't be bad, but exactly, as long as the system itself is still tied to traditional finance and the old world economy, then it doesn't do anything to bring about the complete overhaul of the system that's needed to retrieve the global economy out of its damning cycle.

So we're still stuck, legal or illegal. But if public and private money becomes decentralised, maybe there's a starting point.

[Theb]

If legalization == cryptocurrency as sound money (can be used for payment/exchange) then it might help.

Even if the country only allows cryptocurrencies to be traded in their county I still think it will help boost their economy, the taxes they will receive still will be the same and crypto earners can still use their earnings by converting it back to fiat. So what it means is even if they don't use cryptocurrencies as a mode of payment directly their is still another way around on how they can pay using their crypto earnings.

Of course the biggest problem with this kind of regulation is for the ICO industry particularly the ones who are producing Utility tokens as their tokens won't be of any kind of use besides trading them in the local market. Depending how big their economy are we really don't know the opportunity loss of each country will be having if they only allowed cryptocurrencies to be traded in their coutry.

[BitHodler]

Of course the biggest problem with this kind of regulation is for the ICO industry particularly the ones who are producing Utility tokens as their tokens won't be of any kind of use besides trading them in the local market. Depending how big their economy are we really don't know the opportunity loss of each country will be having if they only allowed cryptocurrencies to be traded in their coutry.

I'm sure that we'll soon (a year or two at most) see there is not much demand left for ICOs, which will likely make place for STOs. I think that's a fantastic development since most of them are tied to the company itself.

Instead of dealing with useless tokens that serve no purpose other than filling up the pockets of the issuers, you are now dealing with a stock-like asset. It's also much easier to regulate and filter out bad actors.

I'm genuinely looking forward to the shift because this has way more value and economical growth to it than all the empty scam ICOs that we have seen pop up till where we are today.

[Indrawan77]

I agree that we shouldn't try to switch the traditional money usage to crypto, we need fiat to balance the economic, abd for the regulation we can't implement the same regulations for each country, because each country gota different aim in all sectors, theoretically the legalisation of crypto could help the global economic, the efficient and effective way to make transaction will  make people easier to do transaction globally, but it will also depend on the regulation

[Kemarit]

Legalizing cryptocurrency is necessary without giving up the use of traditional money. Otherwise, it will provoke outbreaks of economic crisis, which in scale will be close to the collapse of the US economy in 2008. In this case, the rules governing the action of cryptocurrency should be the same for all countries, so that there are no difficulties in using digital coins in the territory of another state.

Go search about the G20 summit this year and I'm sure that you will find your answers there. As far as I can remember there was a proposal to have a global regulatory body in that meeting, but it was met with criticism.

So far, the first attempts to legalize digital money occurred in Japan. There, Bitcoin and other crypto coins were not equated to the traditional currency, but were officially allowed to pay for their purchases and services.

Right and it looks like Japan is very successful at this point isn't it? I think we don't need global body to monitor, what we need is countries understand the risk of crypto and learn how to mitigate it.

[jhongzjhong]

I agree that we shouldn't try to switch the traditional money usage to crypto, we need fiat to balance the economic, abd for the regulation we can't implement the same regulations for each country, because each country gota different aim in all sectors, theoretically the legalisation of crypto could help the global economic, the efficient and effective way to make transaction will  make people easier to do transaction globally, but it will also depend on the regulation

I don't think so if that will happen legalization of crypto will help the global economic crisis but since most likely some countries are against on Bitcoin( Crypto), I think a small percentage of chances will happen. Here is my own opinion, if we implemented legalization on crypto, then, the government will easily be manipulated on it. Let's just accept that economic crisis was always there if we choose leadership that corrupting on us that is always happen. Let's just accept what is Bitcoin (crypto) and what is the meaning of the word decentralized.

[Snaic]

Legalizing cryptocurrency is necessary without giving up the use of traditional money. Otherwise, it will provoke outbreaks of economic crisis, which in scale will be close to the collapse of the US economy in 2008. In this case, the rules governing the action of cryptocurrency should be the same for all countries, so that there are no difficulties in using digital coins in the territory of another state.
So far, the first attempts to legalize digital money occurred in Japan. There, Bitcoin and other crypto coins were not equated to the traditional currency, but were officially allowed to pay for their purchases and services.

Of course, the legalization of cryptocurrency by the states will take place without giving up their national money. No state will ever give up their national money. This would indeed be a great folly and would have unpredictable consequences for the economy of this country.
However, the rules for regulating cryptocurrency in each state will be their own. Here, no one has the right to specify how to do this or that state. Regulation of financial relations in its territory is an indispensable personal right of any state.

[Irvinn]

Legalizing cryptocurrency is necessary without giving up the use of traditional money. Otherwise, it will provoke outbreaks of economic crisis, which in scale will be close to the collapse of the US economy in 2008. In this case, the rules governing the action of cryptocurrency should be the same for all countries, so that there are no difficulties in using digital coins in the territory of another state.
So far, the first attempts to legalize digital money occurred in Japan. There, Bitcoin and other crypto coins were not equated to the traditional currency, but were officially allowed to pay for their purchases and services.

In my opinion, it’s not worth worrying about our usual currency. No state will ever give up its usual currency and will not use a decentralized cryptocurrency as the sole means of payment. The money of each state is interconnected with the country's economy, the cryptocurrency exists by itself and therefore cannot be recognized as the main means of payment.
Back in April last year, Japan legalized cryptocurrency, which is successfully used as a means of payment along with the national money of this state. This will go the other states. Other options will not be.

[elda34b]

There is a country whose fiat systems failed and they switch to crypto: Venezuela. The bad news is, they don't use sound money (Bitcoin), but they create their own cryptocurrency which doesn't essentially remove the manipulation from the government. I tend to believe that if they choose to use Bitcoin as their market money, their disaster could be avoided. Just like when country use gold as the money, where money is a market good not something created out of debt.

[Kingofbitcoin12345]

Venezuela. The bad news is, they don't use sound money (Bitcoin)

Agree that PETRO coin is made to be failed for so many (various) reasons that Venezuelan government thought the different way.. If only they’ve used an existence cryptocurrency other than creating one then a possibility of controversy would be fade within its popularity..

If legalisation is without self interest from government who is backing this move,, then a well known crypto can help widened the options for economic growth like Japan did..

[sunsilk]

There is a country whose fiat systems failed and they switch to crypto: Venezuela. The bad news is, they don't use sound money (Bitcoin), but they create their own cryptocurrency which doesn't essentially remove the manipulation from the government. I tend to believe that if they choose to use Bitcoin as their market money, their disaster could be avoided. Just like when country use gold as the money, where money is a market good not something created out of debt.

I really feel bad for Venezuela for not relying to bitcoin but they just can't, a government can't be dependent to a decentralized money. They have to obtain power from it so they can control it.

There are citizens there that are relying to bitcoin to flee from the hyper inflation that they have been experiencing today. And for their very petro coin, I don't think it will be able to survive for few more years.

[Rajamuda]

It would be difficult to legalize if it was in sharp contravention of the law and financial system provisions of a country, some were still worried about damaging the financial system and other risks that could occur in the fiat financial system, well and however it was such a tough decision to legalize bitcoin/crypto especially in the country where I live, I just wait that there is support that can learn a lot of things related to crypto till not endanger the country's financial system.

[detector]

The question is not relavant because cryptocurrency is just like gold as investment.
Yes, cryptocurrency have the advantage as the payment like fiat but it's still consider as investment platform.
Overall it's depend on government whenever they want to legalize it or not

[Ozero]

In my opinion, so far no state is going to abandon their national money in favor of cryptocurrency. This will not happen in the future, since it would be a really very stupid step and would lead to the imbalance of the economy of any state. Therefore, I think that we have nothing to fear. Governments have a very balanced approach to the issue of the use of cryptocurrencies and the process of its legalization itself is very slow. No one will rush into the cardinal innovations of the financial world. Japan recognized cryptocurrency as a means of payment in April 2017, but it goes there only in parallel with the national money.