In the United States, two former attorneys general have teamed up to challenge current restrictions on cryptocurrency banking services, intending to effect major changes in cryptocurrency policy through court statements.
This move not only reveals the tension between the cryptocurrency industry and regulators, but also foreshadows an impending regulatory storm that could have a significant impact on the U.S. and even global cryptocurrency markets.
The two former attorneys general are Jeff Sessions and John Ashcroft, both Republicans who served in the George W. Bush and Bill Clinton administrations.
Their joint action attracted widespread attention because it showed that senior U.S. politicians were taking the issue of cryptocurrency regulation seriously.
The major factors driving the market growth include the growth of distributed ledger technology and increasing digital investments by venture capital.
Developing countries have begun using digital currencies as a medium of financial exchange.
The increasing popularity of digital assets such as Bitcoin and Litecoin is likely to boost the market growth in the coming years.
In addition, digital currency is often used in conjunction with blockchain technology to achieve decentralized and controllable efficient transactions.
Blockchain technology provides decentralized, fast, transparent, secure and reliable transactions.
With these advantages of blockchain and digital currency, the company is investing in cryptocurrencies and cooperating with other companies to provide users with efficient and high-quality services.
For example, in October 2018, the Singapore-based Quantum Foundation partnered with Amazon Web Services (AWS) China to deploy a blockchain system on the AWS cloud.
The collaboration aims to help AWS users develop and publish smart contracts easily and efficiently using Amazon Machine Images (AMIs).
Such initiatives by market players are expected to aid in the growth of the market.
The spread of COVID-19 has had a complex impact on global markets, with the relationship between Bitcoin and stock markets expanding as the global coronavirus pandemic (COVID-19) spreads.
For example, after the sharp drop in the U.S. S&P index on March 12, 2020, the Bitcoin price fell below $4,000.
Due to the collapse of the initial coin offering (ICO) market, blockchain companies are now mainly trying to obtain investment funds.
To mitigate the economic consequences of the COVID-19 pandemic, major blockchain players such as Elliptic, Chainalysis and CipherTrace said they have cut workforces or budgets.
For example, Elliptic has laid off 30% of its employees in the United States and the United Kingdom; CipherTrace has reduced positions in its advertising and marketing departments, and Chainalysis has announced plans to cut employee salaries by 10%.
Still, given cultural and individual well-being, it seems a reasonable bet that central bank responses will create the ideal climate for markets to sustain.
If Bitcoin continues to outperform traditional markets, it will surely further fuel interest in cryptocurrencies as an alternative and sustainable form of currency.
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The increasing popularity of digital currency will have a profound impact on the market.
People in developed countries are likely to adopt the simple and flexible transaction methods provided by digital currencies.
The popularity of virtual currencies as a medium of exchange has led to central banks supporting digital currencies.
The central bank has applied for a patent on the terms of central bank digital currency (CBDC) activities for many developed countries’ digital currency projects.
For example, the Bank of Thailand and the Central Bank of Uruguay are applying the toolkit to their CBDC assessment process; the Eastern Caribbean Central Bank and the People’s Bank of China also support CBDCs that adopt digital cash as a medium of exchange.
Several companies such as Facebook, Inc. are expanding their businesses by offering digital currencies.
For example, in June 2019, Facebook, Inc. launched a digital currency called Libra.
Libra will let customers buy goods or send money to others and cash out Libra online or at grocery stores.
Additionally, companies can benefit from cryptocurrency price fluctuations and enhance their digital assets.
Drivers Focus on alleviating financial crises, regional instability drives demand for virtual currencies Financial disasters are a major problem facing traditional banking and finance industries.
Financial uncertainty can cause currency depreciation, which can disrupt the economy.
For example, India’s ICICI Bank encountered the Lehman Brothers crisis in 2008, which affected the country’s economy.
For Bitcoin or other cryptocurrencies, the financial crisis has no significant impact on them because their value is generally balanced.
For regions with unstable economic structures, cryptocurrencies are a better option to deal with financial uncertainties, which is becoming a major market driver in the market.
The growing adoption of Bitcoin has witnessed exponential demand in the cryptocurrency market.
Bitcoin is one of the most popular and widely adopted digital currencies in the world.
Rising awareness, growing investor interest, and introduction of supportive regulations are further boosting the market growth.
The maturation of Bitcoin Cash’s value and the facility to provide rewards for transactions are also driving up the market value of the digital cash.
Developing countries such as Japan, the United States, and European countries have shown their inclination towards digital currencies, which is expected to boost the growth of the cryptocurrency market in the coming years.
