Who will be the producer of the cryptocurrency？Central bank or Private enterprise？

Recently, in addition to the ETH price falling below $200 and XRP price falling by more than 92% during the year, another war has begun to sprout.

Is that the central bank should issue cryptocurrencies or private enterprise should do that?

Let’s watch the latest news:

Russia:

September 2 — Russian police: “The central bank ordered the confiscation of more than 20 BTC ATMs and conducted at least six months of review.”

September 10 — President Putin: “Russia needs to introduce cryptocurrencies in a regulated way, and the central bank’s regulation of cryptocurrencies should be more stringent.

India:

April 6th — Bank of India: “Prohibition of banks from providing services to the cryptocurrency business.”

September 10 — The Supreme Court of India: “A hearing was held on September 11 to discuss the willingness to comply with the central bank ban.”

China:

September 5th — China Central Bank Digital Institute: “Announcement of eight new patent applications, four of which revolve around cryptocurrency wallets.”

Iran:

August 28th — Iranian affiliates: “The Iranian national cryptocurrency is issued by the central bank and doesn’t require mining.”

……

There are still many attitudes of countries that have been not written on it. For the legalization process of cryptocurrency, the central bank’s affirmation is very important. However, the current situation is that central banks in most countries have adopted measures such as control and prohibition on cryptocurrencies. So why are the cryptocurrencies and blockchains that are clearly optimistic around the world are regulated so strict?

1.ICO fraud still exists

The word ICO has been abused to the white paper of various project parties. In the era of “What is Ethereum”, it was once a commendatory term, symbolizing the new blockchain project.

However, by the end of 2017, with the increase of various new projects, many fraudulent and MLM with cryptocurrency were born. They used ICO as an excuse to deceive thousands of people and extort their money into their wallets.

For example, in China, where ICO is the most, there are countless people who have jumped off their buildings and defended their rights because of ICO fraud over the course of a year. So China is also one of the countries with the strictest ban on cryptocurrency. In addition to the Chinese ban, even Internet companies such as Facebook and Google have banned ICO advertising and related information.

But even then, the ICO escaped the hunt and continued to be rampant in 2018. Under this circumstance, countries of all countries do not allow all types of enterprises to carry out ICO casually, thus avoiding the impact of cryptocurrency on the existing financial system.

From the perspective of investment, only the cryptocurrency market of private enterprises will become very scary. ICOs are everywhere, not to mention the occult dash coin. This type of cryptocurrency will gradually be used by money laundering organizations.

Coupled with the gap between the rich and the poor will become bigger and bigger, people will become more and more only love money, and abandon normal life. This is undoubtedly a huge blow to the country and the individual.

2. The dispute between the central bank and private enterprises in the cryptocurrency market

In the second half of this year, central banks like China, Japan, South Korea and other countries have begun to get involved in the field of cryptocurrency. However, the reason for their participation is not to get rich overnight, but to worry about problems in the national financial system.

Coupled with the country’s top talents, the central bank’s issuance of cryptocurrencies seems to have become a trend. But these countries seem to have forgotten the first big feature of the blockchain — decentralization. This will greatly limit the application of the blockchain.

Also, there is the bitcoin currency, which could have been globalized, can promote global transactions and reduce fees. However, if it is issued by the central bank, it may become a tool for the country to pry into personal privacy because of the transparency of the blockchain. And the world where the central bank issues all cryptocurrencies may turn into a dystopian world like the Japanese anime “psycho-pass”.

3. Neutralization

Only the private enterprise’s ICO will make the whole society out of order and without restraint; only the central bank’s cryptocurrency will make the whole country become the dictator’s territory. Then why not neutralize it? For example, the private company’s ICO is regulated and listed, and the central bank’s cryptocurrency is also involved in the competition.

Of course, this idea is very naive, because the desires of the people themselves are endless. As long as people have their own desires, then a single fusion will not be binding. Unless the extreme phenomenon of global non-nationalization (that is, complete globalization) occurs, the application of the blockchain will be very embarrassing.

For simple examples, like DAPPs of EOS coin and ETH coin, the number of people still using it has dropped by almost 95%. In addition to market reasons, a large part of the reason is due to differences in language, culture, and policy.

Another simple example: Cryptokitties as a Dapp, could have been popular in China, but why it does not do that? The answer is policy. And why are many Chinese projects not popular abroad? Because of the lack of good government control, most of them have become fraud ICO projects.

How can we make the blockchain project come to fruition? At present, there is no blockchain industry that can balance both practicality and decentralization. The traceability is one of them, but this is not the most powerful use of the blockchain.

Suppose the blockchain is a dragon killer, but there is no dragon in the world. So, where is its existence value? Are we going to continue to look for the future of cryptocurrencies and blockchains, reform the society; or seal them up, and then use them when society needs change?

Sorry to leave a lot of questions, but these questions are undoubtedly the only way to have a pioneering thing. It is hoped that the cryptocurrency and blockchain will find a central point among existing private companies and central banks and strive to develop into one of the greatest inventions of this century.