The first sign that mainstream institutions will not let the new and popular means of fund raising go unnoticed was the famous SEC statement concerning the DAO issue. It spread a ripple of uncertainty throughout the crypto community and prompted re-evaluations of TGE tokens that could be regarded as securities. Opinions on the future of TGE regulations were divided. In this moot environment the X8currency team chose the safest method and we remade our fintech X8X into utility token.
FAVOURABLE AND LESS FAVOURABLE REACTIONS TO CRYPTOCURRENCIES
Unexpected news from Moscow portrayed the Russian Deputy Finance Minister as a champion of cryptocurrencies announcing that they will be trading on the Moscow Exchange. Trading would be restricted to qualified investors and regulation introduced. However, it also turned out not all of the Russian authorities are unanimous about the benefits of blockchain technology. Russia’s central bank view on cryptocurrencies agreed with the Chinese describing it as a pyramid about to collapse. This tension of views is bringing some friction to the early adoption of blockchain technology by a major state. Moreover, it is reported that the central bank of Russia is working hard to block access to crypto exchanges for Russian citizens. If we add the fact that the state considered providing bitcoin miners with power, the signals sent to investors are mixed, to say the least.
The financial authorities of Dubai followed Hong Kong and USA issuing a warning that TGEs should be considered as high-risk investments. The more favourable legal environment of Japan and South Korea drew the fugitive crypto funds from China. Japanese authorities had eliminated double taxation on bitcoin and made it a legal means of payment. In the EU proposals for the use of blockchain technology were brought forth by one of the parties in the European Parliament. Additionally, not wanting to fall behind, ECB is also considering applying some legal restrictions to ICOs.
Switzerland seems to be the most progressive state when it comes to cryptocurrencies. Perhaps this is due to its relatively decentralized political system and tradition of public involvement in matters of state. A TGE summit was held where regulatory dilemmas were discussed. The participants agreed that regulation is inevitable. They also expressed hope that TGE tokens would be recognized as a new asset class.
THE ROOM FOR X8CURRENCY
The most interesting piece of news came from the Managing Director of the International Monetary Fund, Christine Lagarde. She stated that the adoption of cryptocurrencies may be as inevitable as the adoption of Internet used to be. A stable cryptocurrency might also provide an alternative for countries to exiting into dollars according to her point of view. A cryptocurrency backed by a stable basket of currencies is mentioned in this context.
Our team is sometimes asked to comment on projects which our supporters regard as competition. Inevitably it turns out that these supposedly rival projects are based on tokens backed by an asset or several assets. And we always point out the big difference, that while tokens backed by assets must share the fate of these assets, this is not the case with X8currency. It is an active basket systematically aiming at a market-independent outcome. If tokens are not backed by a system with a proven track record, we do not regard them as competition. So far none has come forward. Unsurpassed in stability and safety, X8currency fits easily in the criteria mentioned by the IMF Director which also include full transparency and monitoring.
The trajectory leading to the wider recognition of X8currency may well be composed of two tiers. The race to adoption of blockchain technology in a manner satisfactory to the state coupled with the desire for a stable currency advocated by central bankers. These movements are not unambiguous and are marked by the reluctance of some of the major players to endorse cryptocurrencies due to their great volatility. All these stirrings in the mainstream may create a place most suitable for the wide adoption of X8currency if we can judge this by the talk given by the head of the IMF.