Peer-to-peer markets
Governments around the world have attempted to control both currency circulation, and, its exchange rates through either central banking mechanisms or through other forms of private institutions. True peer-to-peer money exchange markets have been very difficult to sustain when physical currency notes or bonds was a requirement. With Bitcoin and other forms of cryptocurrencies, we are seeing multiple forms of peer-to-peer markets where-in crypto-to-fiat third party escrows often governed by smart contracts are playing a tangible role in facilitating transactions. These escrow services often charge a small fraction of the transaction but do enable and guarantee transactions. As a result, with the growth and mushrooming of private escrow services that will continue to facilitate and foster fiat-to-crypto exchange markets, it will take both governments and agencies large amounts of resources to completely cease and stop these transactions - as in the case of India or China.
A prudent way is to facilitate regulation through large exchanges similar to what is seen in the developed economies. Regulation has multiple benefits. Firstly, it enables the newer technology to facilitate industries and trade that were otherwise not feasible. For example, Ethereum based markets have enabled the growth of a significant number of technologies and markets such as in the insurance sector, computer storage, processing and such. Secondly, it facilitates alternate markets to the most centralized and privatized stock markets, by giving anyone with a computing device access to financial resources. Thirdly, it increases the government's tax base since they can now earn taxes (About 15% - 20%) off profits made by traders and participants in these markets.
A careful regulation will empower citizens tremendously, but enforcement of these regulations at a mass scale in large countries needs to also follow regulation. It is mostly the enforcement costs - that will hamper free crypto-markets, but when there are a few large crypto-exchanges that services the entire country, enforcement will be a lot easier, than attempting to enforce control on peer-to-peer markets that operate through private escrows. The latter will convert the crypto-sector into something like a global sports betting market, which if legalized and regulated has several advantages.
Posted from my blog with SteemPress : https://notesnewtech.com/2019/06/22/peer-to-peer-cryptomarkets/