Cryptocurrencies: first they ignore you, then they laugh at you, then they attack you, and finally... you win?

Various regulators and politicians are expressing concern about Facebook's Libra project. Here's one example: the Bank for International Settlements (BIS), called "the central bank of banks [...] https://www.pinterest.com/pin/1085437947660215829/

Various regulators and politicians are expressing concern about Facebook's Libra project. Here's one example: the Bank for International Settlements (BIS), known as the "central bank of central banks," has published a report warning about the potential monopoly powers of technology companies. But will cryptocurrencies actually revolutionize our world soon? Cryptocurrencies: let's ridicule it! This reminds us of the famous saying: "First they ignore you. Then they ridicule you. And then they attack you and want to burn you. And then they build monuments to you." "It seems to us that governments are in the 'ridicule' phase of this process. And they will eventually tell us how great the concept was! In other words: national (or supranational!) governments might just launch their own versions of Libra." - reads the Medium profile of the Blockstamp project. Stanford professor Joseph Grundfest's statement is also worth reading: "I predict that regulators will not allow Libra to operate as a system without permission, because then no court or regulator will have the ability to exercise authority over the actual operation of the blockchain. Therefore, it will be impossible to implement any prohibition or order issued by any legal system. Crypto-purists argue that the ability of government authorities to avoid regulation is the essence of blockchain. But the idea that regulators would willingly allow a mechanism to evolve that is immune to government control and that facilitates the flow of billions of dollars a day seems inconceivable to me, and it probably is to regulators as well." If this is the case, will we ever see anything like Libra? The demand for cryptocurrencies There is a real need for something like Libra to function on the Internet. Billions of people would benefit from being able to transact through this type of system. Transaction costs would drop significantly and middlemen could be eliminated. It would be ironic if the Libra proposal stimulated the U.S. government to develop functionality that works like Libra, is backed by deposits of U.S. dollars, is operated by the U.S. government and is also available to everyone on equal terms without any benefit to Facebook, Google, Amazon or anyone else. "We are betting that more than one presidential candidate will make this proposal in the not too distant future!" -the Blockstamp experts assert. Do currencies have to be national? Money has not always come from governments. Besides, even something like "national identities" as we know them are only a few centuries old. Nations - as we know them today - began to emerge in the 17th century, and even in some cases later. So it is possible that we are entering a new era of the monetary market. Cryptocurrencies will force central banks and governments to treat their citizens better and offer more benefits for using a particular public service. This could mean cheaper transaction fees and more freedom to move funds. The rise of cryptocurrencies and blockchain technology will have just as much impact on the actions of governments, national currencies, the sense of national belonging, and perhaps even the role of the dollar in the modern world. Tags Bank for International Settlements bitcoin blockstamp Facebook cryptocurrencies libra Libra Facebook