Not so long ago the IMF (International Monetary Fund organization), put out some interesting content related to cryptocurrency. It was a commendable effort by one of the top financial bodies, to explain the concept of cryptocurrency. We saw a group of critics, downplay and even ridicule the efforts of the IMF. We will not get into the naming game but the fact is that, many of these critics have never really attempted to do anything besides spill, paid media content in the industry.
The report clearly stated that, the focus should be on weeding out the misuse or weaknesses of this financial innovation while, harnessing its powerful features. Nothing strange or fictional about that idea, it is something that the Glitzkoin management has been saying all along. Everything has a good and bad side, an apt analogy would better drive home this point – even the most nutritious food could be detrimental to health, if it is eaten in large quantities. In the same way cryptocurrency if moderated, can make a significant contribution to global economies.
The concept of cryptocurrency trade, has not been understood well for way too long. Governments started out by merely ignoring them, the idea or rather the hope was that, they would just fade away. Interest in cryptocurrency kept growing, this saw the development of a closely knit circle of techies, participating in various crypto activities. As it showed no signs of going away, countries triggered the ‘Ban Crypto’ era. Everything from legal action to prolonged jail terms were, aimed at gunning down any form of crypto enthusiasm. It was no secret that, cryptocurrency circles started growing – related activities started to get more organized.
Governments gradually realized that cryptocurrency was here to stay, ways to control it needed to be devised. Many countries began brainstorming ways in which, crypto related income could be taxed. Ways to increase state revenue from crypto trade were in focus, this even as the legality of cryptocurrency trade remained unaddressed.
The formal development of cryptocurrency started with a few nations, we started hearing about ‘crypto friendly’ nations. The forward thinking approach of these nations, forms the basis of today’s global attitude towards the crypto industry. The idea was to regularize procedures that were mandatory for various crypto related activities. The scope covered by rules and regulations, went beyond cryptocurrency trade. Crypto exchange registration, a thorough KYC process to approve account registration in exchanges, the need to report transactions exceeding a specific dollar amount were all clearly defined. Laws and procedures relating to crypto taxation began to take shape.
The process mentioned in the above paragraph, began to be implemented by an increasing number of governments. The concept of blockading crypto activity, drew diminishing interest. There were however a few nations that, threatened legal action against anyone who indulged in any activity that involved cryptocurrency. Fortunately, there are fewer governments today that, subscribe to this extreme attitude.
The real clincher for cryptocurrency came during the COVID-19 pandemic. Governments rushed to distribute relief money to various sections of society – ground reality highlighted the weaknesses of conventional money. The need for complete lockdowns and the highly contagious nature of the virus, placed tremendous challenges for the disbursement of financial aid. Various countries including the United States, had a large group of unbanked citizens - this often meant that they could not receive their dues. Inner circles in the administration, had a change of mindset, the lack of wider cryptocurrency usage was seriously felt.
As governments talk about cryptocurrency adoption and related legislation, central banks are hectically researching the feasibility and logistics of issue an official digital currency – CBDC (Central Bank Digital Currency). Conventional banks are giving out clear signals, they are in favor of taking on additional functions related to cryptocurrency. An interesting happening reported by multiple crypto exchanges during the pandemic is that, the number of new accounts opened at various crypto exchanges has seen a significant rise.
So where do we go from here. What is needed is a combined effort from governments, the crypto industry and the conventional world of finance. None of these stakeholders can do it alone, policies will need to be formulated and objections addressed. Success at this stage would benefit all stakeholders – the time is right, time to shelve egos and work together.
GLITZKOIN: A quick recap of the Glitzkoin project and the GTN crypto token. The project was launched to improve the demand for natural diamonds and to enhance, the efficiency and productivity of the multibillion dollar industry.
The DiaEx diamond trading platform was developed using Stellar blockchain resources. The GTN token was launched as part of the project and is designated, as the mode of payment on DiaEx. Promoted by second generation diamond veteran Navneet Goenka, Glitzkoin assigned a multifaceted role to the GTN token.
The trading platform was completed in 2019 and was put through rigorous testing in early 2020. A team of diamond dealers subsequently did a pilot run on DiaEx with, actual transactions made on the platform. This process was largely successful and revealed a few areas for improvement. The Glitzkoin tech team was handling the minor adjustment when, the pandemic and subsequent lockdowns slowed down the process. The management will reschedule the full launch of DiaEx once the health crisis eases.
Talking about the multifaceted nature of the GTN token, the project is also focused on further increasing usage for the crypto – this aside from crypto exchange trade and the payment usage on the DiaEx platform. The concept is to have operators of various businesses, accept the GTN token as a mode of payment in their operations. Moving this idea forward Glitzkoin has confirmed a partnership with online ticketing giant Myticket.asia, wherein clients of the ticketing portal could use the GTN token as a mode of payment. Technical requirements for the integration of systems on both sides is at an advanced stage, nearing completion. Reviewing the challenges that the entertainment industry has been going through during the COVID pandemic, both managements have decided to set a launch schedule when the situation starts to normalize. The arrangement setup between Glitzkoin and Myticket.asia will form the blueprint, for similar deals to be negotiated with other business operators.
Related Resources: [Project Updates]