Crypto currencies such as Bitcoin, Ethereum, Buycoin and a host of other digital currencies (digital-value transfer platforms) are innovative digital payment and investment systems that enable transactions in virtual/online network platforms. The popularity of crypto currency especially Bitcoin has made cryptocurrency an alternative payment and investment system bypassing traditional platforms such as banks. The volatility in the price criptocurrencies is reflected it their fluctuating prices. For instance, the Independent reported that the price of Bitcoin to $2000 before Christmas, recovered in January and dropped again in February. In March, it dropped below $10,000, $6,000 and recovered to $7,000. As reported, the value further dropped dropped below $6,000 and recovered again in July. As reported, the constant drop in price of all criptocurrencies is not unconnected to Google's threat to ban all related criptocurrency advertising from June.
However, the wide acceptance of crypto currency especially among millennial investors comes with several issues. Among the current issues in Cryptocurrency include the following: lack of regulatory framework, terrorist financing, hacking and sanctions evasion etc.
Regulation: One of the current issues with cryptocurrency is how to regulate it. Cryptocurrencies are not backed by any central authority and this constitutes one of the major debates about its utility and risks. With some countries such as India and South Korea drafting rules and legislations to ban it and some others such as Japan institutionalizing it by creating rules to regulate it. Other states such as Argentina and Estonia are advocating creating a global regulatory framework (Rooney, 2018).
Terrorism financing: The virtual characteristics of cryptocurrency makes it possible for it to be used to finance terrorism with little or no trace. A number of cases has shown that cryptocurrency is aiding the financing of terrorist activities (Keatinge, 2018).
Hacking: Current news about cryptocurrency is filled with stories of hacking, with hackers stealing millions of dollars from exchanges, with some hacking blamed on state sponsored actors.
Sanctions evasion: The year 2018 came with news of cryptocurrency being a means through which rogue states under punitive international economic sanctions try to evade the sanctions. States such as North Korea (hacking exchanges) and Venezuela (floating petro-dollar digital currency) try to use crypto currency to evade sanctions. With cryptocurrency they could use anonymous and black channels to carry out transactions they won't be able to do given the sanctions they are under.
Reference
Griffin, A. (2018). Bitcoin price latest updates: Cryptocurrency recovers from eight month low.
The Independent UK. Available at https://www.independent.co.uk/life-style/gadgets-and-tech/news/bitcoin-price-live-updates-latest-value-exchange-rate-digital-cryptocurrency-futures-investment-a8222851.html
Keating, T., Carlisle, D., Keen, F. (2018). Virtual currencies and terrorist financing: Assessing
the risks and evaluating responses. Policy Department for Citizens' Rights And Constitutional Affairs. Available at http://www.europarl.europa.eu/RegData/etudes/STUD/2018/604970/IPOL_STU(2018)604970_EN.pdf Accessed July 21 2018
Rooney, K. (2018). Crypto currency regulations around the world and where they are headed.
Available at https://www.cnbc/2018/03/27/a-complete-guide-to-cyprocurrency-regulations-around-the-world.html Accessed July 21, 2018
