Regulations on cryptocurrency will disrupt the balance of blockchain.
During a keynote address at the DC blockchain summit, Rep. David Schweikert expressed his concerns about the involvement of regulators in the use of blockchain. On the adoption of blockchain into the mainstream, he outlined some of the possible challenges that will affect the technology.
His main concern was about regulation of blockchain. He believed that although a wider adaptation of the technology will be useful in society, there are too many requirements that will inhibit the efficiency of the blockchain.
In his words:
“My biggest concern with this new idea is that the regulators will want to start manipulating the system at will. Cases of reversing transactions will cost the technology it’s efficiency.”
Worthy of note is the fact that Schweikert has previously co-sponsored a congress in a bid to exempt Bitcoin payments from taxations. Although he wants the lawmakers to acknowledge the benefits of the blockchain, he believes that their extreme regulatory policies might interfere with the authenticity of the system.
According to him, the already existing precedents on taxation will influence how blockchain legislation should be. He said that the vast experience in taxation on foreign exchanges would certainly come to play in blockchain legislation.
Determining cryptocurrency taxation with the already existing tax code will make the process simple and eliminate the need for starting afresh. Some rules and regulations apply to blockchain adoption.
The bottom line is that blockchain adoption into the society will solve a lot of problems. For a start, private networks can be used by small communities for shared services like a babysitting cooperative. On the other hand, in larger communities, a private network can be used for the storage of medical data.
These are just a few instances of how the technology can be applied in the mainstream. Many other social problems can be solved with the unification of the mechanism.