Technology advancements have allowed us to evaluate the pros and cons of automating processes in various organizations and people’s daily lives. If you are a beginner, engage in Bitcoin trading confidently with bitcode-prime.cloud.
Today we are in a digital era that, not to mention the impact of cryptocurrencies, has benefited many institutions to achieve the desired follow-up of their corporations and timely management of their resources.
The technology offered by the Blockchain has come to be defined as the industrial revolution of the digital age, where the decentralization of information allows the execution of tasks from a more efficient perspective, in addition to guaranteeing the monitoring of each transaction that is carried out within an organization.
For this reason, government agencies are looking for a way to automate and control the operations carried out in each department that constitute the fundamental pieces of the government system.
The ability to store information in the Blockchain and the fact that this data is immutable generate greater user confidence, thus reducing corruption and bureaucracy in government entities.
Possibly there is also a background at the financial level since when talking about Blockchain, we also talk about Bitcoin, the digital currency behind a revolutionary technology that, when adopted, will surely be one step away from using digital currencies as a financial means, first of all, bitcoin place.
How is the Blockchain regulated?
Currently, there is no specific regulation for the use of the Blockchain, but what is regulated are the operations executed through this new platform.
Many elements comprise this technology, such as Smart Contracts, which use technology and have specific regulations applicable to these elements.
The main reason why blockchain technology and cryptocurrency regulation campaigns are created is to reduce tax evasion or the enrichment of citizens without leaving the state a part of the negotiations that, at a particular moment, they generate profit.
It is intended to monitor the correct use of technology and cash, cryptocurrencies, and digital payment systems, where users are obliged to inform the entities involved concerning the purchase, sale, and transfer of crypto assets and digital collections and payments.
Transparency in crypto operations
The main characteristic of digital currencies is transparency in the registration of operations, where once executed, they cannot be modified; this undoubtedly generates trust and security in users.
Blockchain technology is not only the one behind cryptographic operations. It also supports every one of the transactions executed in the network as an accounting book, encrypting them to avoid any information violation.
The information is stored in blocks, and once the block is created and closed, it is impossible to duplicate or alter any transaction.
It implies that if someone tried to manipulate a transaction’s system, they would have to change the hash of all the books before and after the operation, which is practically impossible.
What is the object of blockchain regulation?
For many, it is an advance since blockchain technology is recognized as an instrument for the automation of processes, which is why the Argentine Government, on December 7 of this year, made public the creation of the National Blockchain Committee, which will be in charge of organizing the establishment of technology at the various levels of public administration.
Said committee will be directly linked to the Secretary of Public Innovation. This platform has been supported to promote trust, security, and transparency in public processes and transactions, considering that other governments are using this technology.
We are possibly going through the year with the most significant vision of controlling and regulating the elements that comprise the digital financial market. It is precisely due to the increase in users of digital financial instruments and their technologies.
The States want to be included in obtaining some extraordinary benefit that may favor the country’s economy and, in turn, allow the collection of money for fiscal enrichment by cryptocurrencies.