Do cryptocurrencies have a future as legitimate currencies?
I believe that cryptocurrencies such as bitcoin cash do have a future as a legitimate currency. It could be argued that bitcoin cash resembles most closely Satoshi Nakamoto’s white paper as a peer to peer electronic cash. [1] I think that bitcoin cash’s low transaction fees, instant transactions, ability to scale, reliable network, and increased use, particularly in commerce, make it possible that it can be used in the future as a legitimate currency.[2] Governments are increasingly recognizing the new innovative technology and some governments are implementing laws to legitimize and recognize cryptocurrency. [3]
In my home jurisdiction of St.Kitts & Nevis, the Virtual Assets Bill 2020 was recently passed. [4] Following the passing of the bill, the Prime Minister, in his statement, indicated that blockchain and cryptocurrencies are new innovative technologies that are transcending borders and are significant globally. [5] The Virtual Assets Act 2020 defines a virtual asset that “can be used for payment” and also defines a “virtual asset business” and “virtual asset service provider.” [6] The Act and definitions recognize that cryptocurrency can be used as a form of payment.[7]
I believe that there is a value in being able to pay someone on the other side of the planet instantaneously without having to pay high wire transfer fees, and these features will be attractive to businesses and consumers. In my personal experience, many of the vehicles used in St.Kitts & Nevis are imported from Japan and can be bought using virtual currency such as bitcoin cash at a reduced price. Additionally, the islands are in the process of implementing bitcoin cash vending machines, whereby users can purchase utility tokens that can be used to make purchases on purse.io. Some restaurants and businesses on the island accept bitcoin cash as a form of payment for their services.
Other Caribbean jurisdictions have recognized the use of Cryptocurrencies. Anguilla has enacted the Anguilla Utility Token Offering Act that was designed to regulate initial coin offerings and cryptocurrencies. [8] Bermuda implemented the Digital Asset Business Act, amongst other legislation. [9] The Bahamas has launched a pilot project to evaluate the possibility of a central bank digital currency. [10] The Antigua & Barbuda citizenship by investment unit considered accepting cryptocurrencies such as bitcoin and bitcoin cash as payments for their citizenship programme. [11]
In conclusion, cryptocurrencies such as bitcoin cash are starting to be recognized under law as a form of payment, and their increased use demonstrates that they have a real future as a legitimate currency.
[1] Satoshi Nakomoto, “Bitcoin: A Peer-to-Peer Electronic Cash System” 2009
[2] Op-Ed https://news.bitcoin.com/12-reasons-bitcoin-cash-real-bitcoin/ online accessed 9 February 2020
[3] Girasa, Rosario, “Regulation of Cryptocurrencies and Blockchain Technologies National and International Perspectives” (2018) Springer
[4] St.Kitts & Nevis Virtual Asset Act, 2020
[5] Virtual Assets Bill, 2020 Passed to Facilitate a Cashless Society https://www.thestkittsnevisobserver.com/virtual-assets-bill-2020-passed-to-facilitate-a-cashless-society/ online accessed 9 February 2020
[6] [7] Supra 4
[8] Anguilla Utility Token Offering Act (AUTO Act), 2018
[9] Bermuda Digital Asset Business Act
[10] Central Bank of the Bahamas https://www.centralbankbahamas.com/download/012640900.pdf online accessed 9 February 2020
[11] Antigua & Barbuda Citizenship by Investment Unit https://cip.gov.ag/news-updates/ online accessed 9 February 2020
Jennifer Harding-Marlin / Attorney / Citizenship by Investment specialist / jhmarlin.com
