I agree with
Murphy that central banks have taken control over every aspect of financial
processes, and this led to many conventions that helped the access of finances
for a person conveniently everywhere in the world. Once bitcoin enters the
spectrum with its own diversified rules, it could change the entire banking
system of the world.
Murphy also
warned that in the future, regulations about Bitcoin in the United States, Switzerland
and China may not remain the same. In my opinion, Bitcoin makes use of a decentralised
system, which self-regulates through the use of “mining” equipment; digital
rigs that calculate thousands of algorithms from encryptions to generate coins.
This means the currency is self-regulating. Government intervention may only
come in by regulating the use of the technology as it hits the mainstream.
I am quite
thrilled by Murphy’s idea that a dual-economy may likely form. The other world
of this economy is uniting the different consumers who use Bitcoin as a legal
currency worldwide and the lower payment fees Bitcoin provides.
It would
really be a challenge for Bitcoin users to fall under a certain spot of
regulations, I admit, but banks themselves are also facing great problems.
Murphy highlighted that central banks will have to understand how digital
currencies work, and how will monetary policy, exchange rates and credits come
into play in a futuristic world.
