In this comment piece, I will seek to examine the relationship between cryptocurrencies and virtual
currencies from a compliance perspective. I will tie this to the underlying theme from multiple studies,
that a lack of knowledge of these products means more needs to be done by policymakers and the
crypto industry to form cohesive and understandable standards that unearth what these products
are, how they are used and how compliance analysts can be best supported to apply best practice
procedures when conducting due-diligence checks. I will seek to lay out the advantages and disadvantages
of recent developments and explore the challenges they pose on a socio-economic and macro
level. This piece dissects the topic through four chapters.
The first ties it into developments that unfolded during the global financial crisis, the use of collateralized
debt obligations and other derivatives-based financial instruments, ultimately showing how
a lack of knowledge was an underlying theme within the banking system during the 2008 global
financial crisis. The second chapter combines the theme of knowledge and awareness of a product
with the way in which people view cryptocurrency and digital coins, including regulators, courts and
policymakers.
The third explores recent developments from international central banks and governments, from
sanctioned countries using of the product to help their citizens to international alliances forming
across the globe in support of central-bank digital currencies.
The final chapter unpacks the advantages and disadvantages of using these financial instruments,
from countries in the global south suffering from scams to the pressure it takes on energy efficiency,
concluding that more needs to be done to educate users, regulators and everyone in between for the
success of the digital currency to be fully realized.
| Identifer | oai:union.ndltd.org:DRESDEN/oai:qucosa:de:qucosa:70818 |
| Date | 13 May 2020 |
| Creators | Kimathi, Sharon Kits |
| Publisher | Universität Leipzig, University of Miami |
| Source Sets | Hochschulschriftenserver (HSSS) der SLUB Dresden |
| Language | English |
| Detected Language | English |
| Type | info:eu-repo/semantics/acceptedVersion, doc-type:article, info:eu-repo/semantics/article, doc-type:Text |
| Rights | info:eu-repo/semantics/openAccess |
| Relation | urn:nbn:de:bsz:15-qucosa2-708024, qucosa:70802 |
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