Bitcoin has been moving up for some time now. The path to higher values has been a rocky one and Bitcoin bulls might be getting some encouragement. Whether this translates to a bullish outlook is another question entirely.
Not all governments are hostile to Bitcoin. Actually, a lot of governments are simply not sure what Bitcoin is and how to approach it. The government of Malta stands out as an example of how officials might actually try to understand the currency and regulate it. In an article on CoinDesk, we read:
Now, in an address to the United Nation’s General Assembly, Malta Prime Minister Joseph Muscat has said he sees blockchain technology as the tool which will allow bitcoin and crypto to “inevitably” gain widespread, mass adoption and become the future of money.
Muscat has previously said he believes bitcoin and blockchain have the ability to eliminate third party service providers, giving users more freedom over information and money.
“By being the first jurisdiction worldwide to regulate this new technology that previously existed in a legal vacuum. Blockchain makes cryptocurrencies inevitable future of money. More transparent, it helps filter good business from bad business”.
This is a pretty interesting development. We are actually seeing one country talking about regulating Bitcoin and including it in the financial system. Is this a breakthrough? For starters, it is hard to overlook the fact that Malta is a rather small country. This means that whatever its government does, doesn’t necessarily have to have any impact on the developments in the broad Bitcoin market. But we can’t brush this event off either.
The willingness of one government to regulate Bitcoin provides us with a hint that it might not be completely unreasonable to expect governments to regulate Bitcoin in the years to come. So, Malta gives us something to look forward to. That is, we are on the lookout for systemically important countries changing their approach to Bitcoin. For instance, any similar comments from the U.S. government could be interpreted as bullish. We are not at this point yet, though.
