Supervision of community cryptocurrency -Part 2

Si Gyeongmin

Sep 22, 2021

As a currency, the distinguishing feature of cryptocurrency is that it is directly used in goods and services transactions, and its main use is as a payment method. As a program algorithm, the coin has a broader infrastructure than the token. Both coins and tokens are used to define the value of the blockchain. A coin is a unique digital currency based on its own independent blockchain, and a token is established and hosted on the existing blockchain. The difference between cryptocurrency and traditional currency backed by national sovereignty is not in the form of digitization. In fact, many governments in the world are considering issuing digital currencies. Fundamentally speaking, what distinguishes a currency from other payment methods is the quality of the community behind its issuance, the government, or other institutions.

Cryptocurrencies issued by non-sovereign communities may require standardized supervision for three main reasons:

First of all, cryptocurrency is a barbaric form of Western trading. The failure rate of cryptocurrency is very high. Supervision can protect investors and other related personnel;

Secondly, not all cryptocurrencies are as decentralized as assumed, and some currencies have serious problems in terms of transparency and legitimacy;