30 Jul 2021 11:04 AM +00:00

Cryptocurrency Regulations Are A "Double-Edged Sword" Says Ethereum Co-Founder

Ethereum co-founder Anthony Di Iorio has described cryptocurrency regulations as a "double-edged sword" in a recent interview with BNN Bloomberg.

Di Iorio, who recently quit the cryptocurrency industry for personal security reasons, spoke of the need for countries to find a balanced approach to the growing technology sector.

This comes as governments continue to clamp down on unregulated cryptocurrency trading. The US Senate added additional cryptocurrency taxation rules to a recent infrastructure bill earlier this week that could raise $28bn.

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Achieving a balance

"You have the double-edged sword," said Di Iorio. "Do we clamp down on [cryptocurrency] because of what we're seeing? But then we have the potential of losing out on jobs and having leaders in this space."

He also noted that regulators need to achieve a "fine balance", adding that education is also vital to improving understandings of cryptocurrency.

"This is a movement that's not going to be stopped, you're going to have technologies that can't be shut down.

"How do we look at it differently than just being a hammer to try and regulate things? The countries that figure it out are going to be the ones that improve their economies, become more productive, and get more jobs."

Di Iorio was also asked about the influence of high-profile individuals within the cryptocurrency world, such as Elon Musk. The Ethereum co-founder stated he did not want to generalise people but said he wanted to see more individuals focusing on education, and "not having fun with something that’s so important."

Further cryptocurrency regulations have recently been implemented in a variety of countries. The UK Government has issued a series of warnings to consumers about the risks of cryptocurrency, tightened regulations on platforms such as Binance, and further emphasised the need to adhere to anti-money laundering guidelines. China has continued to add restrictions to cryptocurrencies - leading to greener bitcoin mining, according to reports.

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While these nations may be targeting cryptocurrency, it appears they are stepping up efforts to create their own digital currencies. 81 countries are now in the process of creating their own Central Bank Digital Currency (CBDC), according to the CBDC Tracker.

Read More: Ethereum 2.0 Release Date: When Will Eth2 Launch?

[Featured Photo by Tim Reckmann on Flickr]