To create a globally accepted cryptocurrency, governments and investors need to trust its reliability. As nations and financial institutions continue to make crypto investments, there is a growing desire to implement and enforce regulations.
An article from CoinCentral, How Venezuela’s National Cryptocurrency is Working, by Jacob Yoss, explained that countries are experimenting with national cryptocurrencies. In 2017, Venezuela became the first country to implement a national cryptocurrency, the Petro, to be its primary currency.
While many countries are open to investing in the Petro, the cryptocurrency is very controversial. Wired reported that International experts referred to the Petro as “a scam on top of another scam.” In the United States, an executive order banned buying or investing in the Petro. The government concluded that supporting the Petro would obstruct the intent of U.S. imposed sanctions.
Bakkt Promises Reliability
The Intercontinental Exchange (ICE), owner of the New York Stock Exchange (NYSE), is launching the Bakkt ecosystem. Bakkt and its partners, including Microsoft, Starbucks, and BCG, plan to transform Bitcoin into a global currency that is safe, efficient, and reliable. On Twitter, ICE announced plans to offer Bakkt’s first physically delivered Bitcoin futures contracts instead of fiat currencies. ICE explained in the Tweet that “buying one USD/BTC futures contract will result in daily delivery of one Bitcoin into the customer’s account.”
MintDice compared the pros and cons of the Bakkt ecosystem. The supporters of Bakkt believe that the platform will increase participation of institutionalized investors in the marketplace. Importantly, the platform will give the investors more confidence to invest in cryptocurrencies. However, critics worry that Bakkt requires a centralized custodian, which defeats the purpose of a decentralized peer-to-peer network. Also, Wall Street could use derivative markets to influence coin prices.
Bitcoin and other cryptocurrencies experienced a downward trend in early 2018. Looking forward, crypto-advocates believe that Bakkt could be a catalyst that will encourage wealthy investors to enter the crypto-market. The enthusiasm of new investors may cause virtual currencies to start growing again in value.
Alice M. Porch, Esq., CIPP/US, C|EH, Security+
Alice is a member of the Florida Bar, and she focuses on data privacy and cybersecurity compliance. She attended the Warrington College of Business at the University of Florida and earned a Bachelor of Science in Business Administration. After graduating, she earned a Juris Doctor at the Stetson University College of Law. During law school, she served as an Assistant Executive Editor for Stetson Law Review and also as a Staff Editor for Stetson Journal of Advocacy and the Law. She also served as a member of The Florida Bar Journal/News Editorial Board from 2018-2024. She is currently a member of the Florida Bar Cybersecurity and Privacy Law Substantive Law Committee.
