Cryptocurrencies have captured the attention of people all over the world and are now widely used for investments and transactions. They rely on blockchain technology to provide transparency and authenticity, but many countries are still grappling with how they work and how to regulate their trade.
The advent of cryptocurrencies has revolutionized people's perception of money and finance. Some see cryptocurrency as a way to escape the clutches of corrupt and inefficient governments and central banks, while others view it as a means to circumvent traditional financial institutions, which they find cumbersome, expensive, and opaque. Nevertheless, international banks and other prominent players in the financial sector have been slow to adopt cryptocurrencies. Many banks remain skeptical of cryptocurrencies, viewing them as speculative investments rather than legitimate currency. Additionally, the frequent association of cryptocurrencies with illegal activities like money laundering and terrorist financing adds to their skepticism. While cryptocurrencies do offer some degree of anonymity, this feature also attracts criminals.
This article explores whether cryptocurrency can legitimately be considered a currency, its legal status both nationally and internationally and whether it can fulfill the role of a banking system at the national and international levels. The article also suggests how cryptocurrencies can be traded as currency in the banking system while safeguarding against cyber threats and malware attacks.