Gibraltar has expressed interest in becoming the world’s first cryptocurrency hub. The new way of dealing with money, digitally, has attracted the attention of global economic powers.
Recently, the British region of Gibraltar has been one of several countries enacting legislation to attract crypto companies and projects. The country’s stock exchange is preparing to take over the world’s largest cryptocurrency hub as it has started trading traditional financial values side by side, and this new form of money continues to shudder in charge of the great global economies.
Moving from a tax haven to a cryptocurrency haven is the main purpose of Gibraltar, which for many years has seen its identity linked to tax fraud and the negative effects of tax policy that has allowed, for example, to pay a corporate tax based solely on profit-earning calculations or Declaration of residence in Gibraltar, even if the main residence is in Spain.
Albert Isola, Gibraltar’s Minister of Digital, Financial and Public Services, told The Guardian that 14 cryptocurrencies have already been approved and that blockchain companies have been welcomed into the country. On the table is Valerium’s proposal to make the cryptocurrency sector profitable at more than 3.1 billion euros. Valereum is based in Gibraltar and offers solutions and technologies to link major traditional currencies, such as the pound or the dollar, to digital goods.
But what are bitcoins after all?
Bitcoin is a digital currency created with the goal of decentralization. In other words, it allows free trade between two entities, directly, without the need for a central bank to regulate what we know today as paper money.
Talking about digital money is approaching an industry that has gained prominence in recent years. Therefore, the competition between investors and big companies is part of a broader marathon involving government economic interests. For this reason, Gibraltar opposed the trends presented by China and the USA, which showed some skepticism about welcoming companies that have already adopted cryptocurrencies. According to a report published in the American newspaper “The New York Times”, the Chinese authorities banned trading in cryptocurrencies after the hacking of one of the largest regulated exchanges.
In an effort to strengthen the financial sector in the region, Gibraltar has pledged to formally regulate cryptocurrency. The government said this was a way to “eliminate the bad guys and provide guarantees to investors”, a strategy aimed at bolstering the country’s image, after more than 20 years of notoriety linked to tax havens. Now, from the point of view of employability and tax revenue, it would be very beneficial for Gibraltar to become a crypto hub, however, assuming that such a situation could have irreversible risks.
Still unfamiliar with the concept of encryption?
Encryption is a security tool that “mixes” information to ensure the confidentiality of user data. Only those who know how this information is divided are able to access the contents of this data.
Specialists warn of possible non-compliance with the measures stipulated in the regulations enacted by Gibraltar to formalize the cryptocurrency business. In this case, the country runs the risk of tarnishing its reputation and suffering diplomatic sanctions from powers such as the United States, which could jeopardize the region’s economy.
Some of the world’s largest financial assets, such as the Bank of England, have expressed some concern about the rapid growth of crypto assets as they see this as a gateway for crime money to infiltrate the traditional financial system. Scams are increasingly frequent in this industry, and the technology used is the same as that of Bitcoin, better known as the blockchain.
This service is designed to allow you to send money without obtaining approval from government agencies or existing financial institutions.
Some skeptics raise issues such as facilitating money laundering, anonymizing criminals, financing terrorist groups, and the integrity of the market itself.
The question remains: Will the cryptocurrency economy be as beneficial to those who use it as it is to those who make the profits?
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