Business News of Thursday, 12 April 2018
The subject of the digital currency has been the interest of many since the introduction of the Bitcoin brand in 2009.
With many questioning the legibility and security of the digital currency transaction platform, cryptocurrencies like Litecoin, Etherum, Zcash, Ripple, including Bitcoin have lacked recognition from Central Banks and Reserve Systems because it is not accepted in most countries.
Director General of the Securities and Exchange Commission (SEC) Rev. Daniel Ogbarmey Tetteh, stressed the need for cryptocurrencies to be decentralized to curb the issue of inflation with the transaction platform.
He explained that the lack of a regulatory framework from state administrations could result in inflation and devaluation due to inconsistency, unlike traditional currencies. Rev Tetteh added that Cryptocurrencies have their prices determined through the forces of demand and supply.
At a Digital business conference organized by Nobel International Business School (NiBS), Daniel Ogbarmey Tetteh said “At the heart of the creation of Bitcoin and most other cryptocurrencies is the intent of creating a currency insulated from central of government interference and control.”
However, former Head Global Markets, Stanbic Bank Ghana, Inusah Musah emphasized that “For bitcoin to gain global acceptance and be used as a competitor money to the Dollar, Euro and Pound, it must be accepted everywhere, it must be very stable and credible.”
Inusah Musah made this disclosure at the second edition of Myndshop, a proprietary event of the Bank dedicated to idea sharing on topical issues among like-minded individuals.
With factors like technical, economic, emotional, philosophy, legal, other crypto currencies as forces working on Bitcoins, the SEC Director disclosed that cryptocurrency regulation has rather been quite slow compared to the pace of development of crypto assets.
“Up until the beginning of 2018, only few regulatory authorities had taken positions on cryptocurrencies with variant postures. Underlying the regulation of cryptocurrencies is the requirement of appropriate classification. Is it the currency? Or is it the security?” He stated.
In addition, he said in most instances where such conversations have happened, the taxation authorities have decided to treat cryptocurrencies as assets for capital gain tax purposes.