Although cryptocurrencies and the technology that powers their use have been around for about a decade, for much of that time they have been talked about only among a small audience of diehard enthusiasts. Many of their most dedicated fans considered themselves part of a somewhat revolution against the more regulated and commonly used fiat currencies. However, recent events have suggested that cryptocurrencies and blockchain technology are not quite as secret as they once were. They are no longer representative of a fringe technology that few people support, and they have started to enter mainstream conversations and be subject to mainstream actions around the world.
Earlier this year, the President of the United States and a frequent user of Twitter, Donald Trump, tweeted about his distrust and dislike of cryptocurrencies. Shortly after a series of discussions within governments around the world began about cryptocurrencies and whether or not they should be regulated or some sort of tax should be imposed upon them. Crypto finally became a major discussion point in governments across the globe, rather than just among a select few, as government leaders sought answers about new currencies that were growing in popularity.
Cryptocurrencies really started to make the mainstream news around the world in December 2017 when Bitcoin’s price briefly reached $20,000. Many people who hadn’t previously heard about Bitcoin all of the sudden were interested in buying some. Even though Bitcoin dropped much of it’s value after that and has continued to fluctuate in price, at that point at the end of 2017, more people started to take cryptocurrencies seriously as a mainstream, viable investment, viewing crypto exchanges in a similar way to how they view the stock market. We know this to be true because, according to an article on Bitcoin.com, between November 2017 and the end of January 2018, the total number of open cryptocurrency wallets increased by 2.5 million. Since then, discussions of cryptocurrencies in the news has become more and more frequent.
Recent reports have stated that PwC and Burger King have now joined the ranks of companies accepting Bitcoin. PwC is one of the largest consulting firms in the world, and of course we all know Burger King as one of the main competitors to McDonald’s and as a fast food company that has opened restaurants in countries all over the world.
More major companies that accept Bitcoins are Microsoft, Expedia, Overstock, and Wikipedia.
Other companies that have become well known in various sectors have branched out to invest in their own cryptocurrency exchanges or other crypto focused products. LINE, the company behind Japan’s most popular messaging app, recently made headlines when it’s digital asset and blockchain focused arm, LVC Corporation, received a crypto exchange operating license from Japan’s financial regulator.
In August 2019 banking and financial services giant HSBC completed the first Chinese Yuan denominated letter of credit transaction on a blockchain.
Certainly the most well known case of a company planning to enter the cryptocurrency space is Facebook’s decision earlier this year to introduce the Libra cryptocurrency. When Facebook’s Libra cryptocurrency was announced, cryptocurrencies and blockchain technology once again became the focus of news networks in many countries.
Facebook’s global appeal, with it’s more than 2.3 billion monthly active users, provided further evidence to back up the claim that cryptocurrencies and blockchain technology have become mainstream. Although there were some common concerns with Facebook’s decision to enter the crypto market considering the company’s recent history with privacy violations, Facebook is one of the most recognizable companies in the world and to many crypto enthusiasts, Facebook’s interest in cryptocurrencies seemed to further legitimize aspirations for cryptocurrencies to finally achieve mainstream adoption.
Malta has quickly become a major hub for cryptocurrency companies and has taken a keen interest in blockchain technology, helping to bring the space further into the mainstream. This has caused many crypto and blockchain businesses to move to Malta in their search of a crypto-friendly location to be based. On Sept. 6th 2019 the Malta Financial Services Authority (MFSA) published a three year strategic plan to actively monitor business risks related to cryptocurrency firms.
By formally addressing the growing cryptocurrency space in the document and setting out a plan to prevent any illegal activity, the government in Malta has actually committed to monitoring cryptocurrencies in a very similar way to other financial services, officially recognizing the new technology in a document financial technologies that have existed for many decades. They have instigated these cryptocurrency rules as a way of combating financial crimes, and by becoming the first country to regulate the cryptocurrency industry, while doing so in a fair way, Malta has continued to live up to its reputation as the “blockchain island.”
This month (September 2019) the Minister In-Assistance to the President and Environment of the Marshall Islands published an essay explaining the country’s cryptocurrency project, in which they plan to introduce a digital currency as an option rather than continuing to use the United States dollar as the only official currency.
China also plans to release a government cryptocurrency, and a recent report claims that seven institutions will be among the first to receive the currency when it launches. A source claims that the cryptocurrency could launch by Singles Day on November 11th, China’s busiest day for shopping. When it is launched, the seven institutions will then be responsible for dispersing it to China’s more than 1.3 billion citizens. Nothing seems to represent the claim that cryptocurrencies have gone mainstream more than the fact that it is soon likely to be used by every citizen in the world’s most populous country as well as others who currently do business in China’s fiat currency.
It is certainly clear that cryptocurrencies have come a long way in the decade since Satoshi Nakamoto mined the first block of bitcoin in 2009. But what are your thoughts? Are we there yet? Have cryptocurrencies and blockchain technology finally gone mainstream, or does that milestone still exist somewhere in the future?
