The brain behind Alibaba is also a supporter of cryptocurrency. Jack Ma feels that regulators, seem to be obsessed with conventional banking. Several parameters that meant to reduce various risks, attached to the banking system have been define and implemented. And now, efforts are being made to do the same for cryptocurrency.
Trying to implement similar parameters for cryptocurrency, regulators highlight the fact that cryptocurrency has a few features that contain higher risk elements. Jack Ma mentions that, by attempting to evaluate cryptocurrency based on the parameters defined for conventional banking, authorities seem to be developing a negative opinion about cryptocurrency. His opinion is that, cryptocurrency development is being negatively impacted.
While there is truth in Jack Ma's opinion, we must realize that cryptocurrency is gradually playing a role that is similar to conventional money. At this point, some of the critical rules that govern, fiat money will have to be applied to cryptocurrency – there really is no option.
A good example relates to security issues like crypto exchange hacking and crypto scamming - these are cases where investors could end up losing their crypto assets. The characteristics of blockchain and cryptocurrency, make it tough to trace the physical identity of the person behind these frauds. Let’s not forget that the extent of anonymous bank accounts, has considerably reduced. Transparency has been continuously sought in the banking sector. Compare this to crypto investments where, almost nothing is disclosed. This by virtue of the very technology that, drives crypto.
Looking beyond crypto hacking and stealing, we come to crypto taxation. To make crypto investors liable to pay taxes, it is essential to reveal the face behind the owner. This would again require a fundamental adjustment of the way in which, crypto transactions are made. The crypto purist would claim that, this would be against the very foundation of blockchain and crypto. When assets like real estate and cars can today be purchased using crypto, you just cannot leave those transactions out of the tax arena.
So what we need to prepare for is a robust building of the crypto industry, with all its products and infrastructure – this under a streamlined, responsible and accountable crypto space. We need cryptocurrency, we need it to do more than bounce about by violent speculation.
Not getting into a debate about whether, crypto can replace today’s money but, surely cheering for crypto to get on par status with fiat money. This even if it means that, some legal framework would evolve to try and make crypto as reportable as paper fiat money.
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]