Bitcoin regulation has always been a rather controversial subject. On the one hand, the cryptocurrency is designed to stand alone and give people the chance to garner financial independence. However, if there is no regulation whatsoever for the world’s number one digital currency by market cap, things could wind up very bad with the space, and cybercrime and other malicious activity could continue to meander throughout the arena without limits.
Steven Parker: Bitcoin Must Be Regulated Somewhat
Now, a former executive of Visa is claiming that unless there is some form of law regulating the actions of bitcoin and its traders, the currency will likely never attain mainstream status and never be looked upon as a legitimate cryptocurrency. In a recent interview, Steven Parker – a former Visa head who now runs the digital startup Crypterium – explained to listeners:
We have to admit that the infrastructure of the payment networks of companies like Visa and MasterCard are huge. You’re not going to rebuild that, so reusing the rails that already exist is a way to get quick adoption and to create sort of hybrid solutions.
He explained that several large financial companies, such as the credit card firms that he mentioned, have shown a willingness in the past to work with bitcoin and the many altcoins that now call the crypto space home. This is a huge step forward in that several of these companies are now ready and willing to admit that crypto is likely here to stay.
Before, it was competition to the hilt. Now, there is a sort of trust and bond that is occurring in the space that is no longer pitting these companies against each other, but rather creating mutual relationships between financial entities.
But the idea of crypto regulation ultimately goes against everything that bitcoin and its altcoin cousins stand for. The very first segment of the bitcoin whitepaper mentions the following:
A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.
This Goes Against the Original Notions of Crypto
Bitcoin is designed to be utilized by individuals and individuals alone. It was not built to operate in the same manner as credit cards or fiat currencies, which means it is not supposed to pass through third parties at the end of the day. It moves from one person to another, and nothing gets in the middle.
At the same time, there have been very few measures that have sought to counter the ways of cybercriminals and thieves that, in the past, have decimated crypto trading platforms and wiped their stashes clean, leaving all traders and investors in the dust, so the idea that crypto could potentially exist without any regulation whatsoever seems a little farfetched, especially in a world of growing threats.