Virtual currencies will remain with us in the future, should be regulated, but not banned. The report dubbed “Virtual Currencies And Central Banks Monetary Policy: Challenges Ahead was presented by Marek Dabrowski and Lukasz Janikowski of the Center for Social and Economic Research (CASE) — an independent, nonprofit economic and public policy research institution based in Warsaw, Poland.
Essentially, the authors argued that virtual currencies — meaning Bitcoin and altcoins in particular — is a form of private money that enjoys its technological benefits that allow for cheap and swift transactions across the globe: “Unlike their 18th and 19th century paper predecessors, VCs are used globally, disregarding national borders.” However, the report argues that VCs are not widely acceptable.
Thus, the paper outlines a neutral overview of cryptocurrencies with their usual pros and cons that are commonly discussed in mainstream media, and then proceeds with their conclusion. Notably, the authors argue that VCs should neither be ignored nor banned by regulators:
“VCs should be treated by regulators as any other financial instrument, proportionally to their market importance, complexity, and associated risks. Given their global, trans-border character, it is recommended to harmonize such regulations across jurisdictions. Investment in VCs should be taxed similarly to investment in other financial assets.”