Although crypto coins are decentralised devoid of government intervention, it is noteworthy that they are now getting the attention of states. Some countries are even recognising their value as a medium of exchange, while some are apprehensive about the idea, so there is a fair chance that you could still use some trading tips. Still, reasonable caution is highly recommended in this endeavour. Learn how the world has recently responded to the emergence of the crypto market as an unstoppable force in the local economy.  

El Salvador

It appears that El Salvador is taking a huge leap of faith with its Bitcoin Law which recognises the cryptocurrency as a legal tender. Congress has approved the proposal of its Executive Chief to legitimise the use of this digital coin in hopes of making financial transactions easier, especially for the common people. President Nayib Bukele shares the sentiment of Bitcoin’s founder that the virtual currency would pave the way for financial inclusion so that those who cannot maintain bank accounts could also have access to a decent financial mechanism.

More than anything else, Bitcoin is expected to give a huge sigh of relief to El Salvadorans receiving money from relatives abroad. All it takes is a reputable crypto exchange to send coins to locals. And with Taproot already on its way, subscribers could make the most of lower transaction costs and faster transactions.

The idea has been lauded at least by those who think that such a historic political move shall take precedence. Still, some are hesitant to espouse the proposal. It was a bold decision for the Republic, which might turn out to be its saving grace once Bitcoin has been fully integrated into the world’s fiscal system.

How to Choose Liquidity Provider?

Thanks to the rise in the trading of assets in recent years, a large number of liquidity providers have come into existence that brokerages can choose from. When it comes to finding the right liquidity provider, there is no “one-size-fits all” solution as every brokerage has their own needs. With a large number of liquidity providers in the industry, it is not always easy to choose the best one to work with. In this article, we pinpoint some of the key questions to ask and aspects to consider when selecting a good liquidity provider.

China

If El Salvador has opened its doors to Bitcoin, China is, however, shutting its doors not only from Bitcoin but also to other crypto coins.  The oriental country is developing its digital currency as an alternative. As a communist nation, it is inevitable for the Chinese government to keep things centralised, which applies to the virtual money market. It is for this reason that the state has finally decided to create its own.

In effect, China’s virtual currency would be more like the digital banknotes developed by the Central Bank of the United States. It has guaranteed value as it is backed by the government. This is why the output would be totally different from the nature of crypto coins thriving in a free market.  Whether it would gain the same patronage, it is only time that could tell.

A total ban of other cryptocurrencies would, however, result  in a monopoly of the virtual money market in China. Simply put, there would be virtually no competition at all, which would mean a very limited option for its people. Such a ban also extends to crypto trading platforms offering many different crypto coins. It is yet to be determined if this action could stop the locals from mining and trading.

India

As for India, it has weighed on the matter and has decided to stay neutral at least according to the latest interview of its Finance Minister. There are no special laws put in place to regulate the crypto market. And, the government managed to stay away from crypto operations with no data collected concerning its use in the country.

Be that as it may, the government is committed to eradicating fraudulent activities associated with crypto transactions. The current legal system is deemed sufficient to take down cyber crimes. No crypto bill is in sight at the moment that would resolve issues and concerns involving this very peculiar market. There is also no decision yet about the recommendation of the Inter-Ministerial Committee for the government to develop its digital currency and ban the others. In essence, the proposed policy would be similar to that of China.

At least the government is aware of the opportunities and threats posed by cryptocurrencies. It would need concrete data to be able to decide firmly whether or not to consider the recommendation of the committee. Maybe the tides are changing, given the indecisive answers of the Finance Ministry to questions about the status of cryptocurrencies in India.

Conclusion

There are certainly new trends on how the crypto market has shaped domestic policies in El Salvador, China and India, with more and more countries anticipated to follow suit.