Supervision of community cryptocurrency -Part 3

Finally, unlike other general applications of blockchain technology, the distinguishing feature of cryptocurrencies is their desire to become legal currency. Since the desire of most cryptocurrency communities is to establish a currency equivalent to legal currency, the use of currency should be distinguished and regulated from technology.

In addition, the development of the cryptocurrency field is very rapid. In June 2019, Facebook announced plans to launch Libra, an encrypted stable currency. This announcement has aroused great attention from all over the world, as well as a hearing in the U.S. Congress and concerns about national security. As a technology, Libra may look more like a token than a standard cryptocurrency. The design of Libra makes it too closely connected with the promoters, making Facebook’s proposal look more like a token rather than a dollar.

Cryptocurrencies such as Bitcoin were previously mined and traded by communities closely related to the generation and transfer of Bitcoin. Today’s companies may seek to generate and trade their own cryptocurrency. Just like the Libra created by Facebook, this currency created by non-traditional sovereign communities is a special and interesting part of the current regulatory system, and it is also a challenge that the regulatory system needs to solve.