28

Blockchain-based cryptocurrencies like Bitcoin aren't actually that untraceable, because the transfer history of every wallet is public. When cryptocurrencies ever become economically relevant, you can expect law enforcement to put all those currently hyped big data analysis and machine learning technologies to use and data-mine the blockchains for ...


7

Per my understanding, the main consequence of bill for crypto is that it imposes a tax requirement on proof-of-stake validators, protocol devs etc, to report taxes on people who transact with the technology (much like how stockbrokers have to report taxes for the clients). Your interpretation of the bill is incorrect. The bill would redefine the word "...


5

Cryptocurrencies have long been promoted as an escape from traditional, government-backed currencies, so the proposal of the Marshall Islands to create an official state cryptocurrency seems fairly odd at first. However, some research has been undertaken into how a nationally backed cryptocurrency could work - along with analyses of the associated positives ...


5

Existing cryptocurrencies have many problems, among them the fact that they are not really currencies for many legal purposes. Having a recognized, sovereign nation lend to legitimacy might help a bit. Cryptocurrencies are just as faith-based as most other currencies, so moving early and establishing a name (and an unique selling point, see above) might ...


1

This very much depends on the architecture proposed and what the political drivers are. A national consumer cryptocurrency intended to substitute cash operations while at the same time offering smart contract functionaltiy would need to solve the same problems that, for example, Ethereum 2.0 is still researching. Namely, scalability (number and frequency of ...


1

Banknotes and coins are effectively untraceable, and other forms of pseudocurrency such as prepaid credit cards and Amazon gift cards have similar problems. Similar issues are found when buying and selling high-value items such as cars, gold, jewelry. Nonetheless it's still possible to monitor transactions through various methods. Business accounts. ...


1

I think that Philipp's answer is not accurate enough. Even in cryptocurrencies that are pseudonymous and provide the least anonymity (like bitcoin) you can use your wallet's address only once in a transaction. This tears the link between multiple transactions. If you delete the private keys for your spend transactions no one can prove that you actually spent ...


1

I imagine the future to be filled with government backed cryptocurrencies, where trade in one country is only with their own government-backed flavor. In this future hypothetical situation, the government would know when, where, how much was transferred and spent at all times. Blockchain currencies like Ethereum already support and encourage new currencies ...


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