United Nations (UN) said that crypto is a threat to developing nations
According to the United Nations (UN), cryptocurrency poses a threat to developing countries. The use of cryptocurrencies, it was said, is detrimental to the nation’s monetary sovereignty. Tax collection will be challenging for developing nations, and they won’t have control over the money that their populations utilize. The definition of “sovereignty” is “ultimate power or authority.” The UN’s declaration that nations won’t have it indicates that they are aware of how little authority ordinary people now have.
Making the bold claim that cryptocurrency poses a threat is dangerous and goes completely against earlier statements. According to the UN, developing countries benefit from how simple it is to transmit money across borders using cryptocurrency. However, they also believe that its use will harm the economy. With 12.7%, Ukraine now has the highest ownership of cryptocurrencies. With 11.9% and 10.3% ownership, Russia and Venezuela come in second and third. According to the data, one of the top 3 countries is still developing, and the other has extremely high inflation.
The fact that there are no other parties involved is what drives us, as users, to utilize crypto. This indicates that we are in charge of the transactions. However, that is a bad thing in the eyes of the authorities. According to the UN, users cannot be pressured to report because there is no third party. Additionally, there aren’t enough laws in developing nations to force businesses to abide by the rules.
Developing countries must first specify the laws and guidelines governing cryptocurrencies in their jurisdictions. Second, creating a tax system that is accepted everywhere can make it simpler to collect. Additionally, they will have little trouble catching evaders. The UN also suggests placing high taxes on cryptocurrencies due to their detrimental effects. This will deter investors from buying and holding cryptocurrencies. The UN’s remarks demonstrate two things. They were initially very dubious about cryptocurrency and its advantages. Additionally, they worry that if they lose control of the money, nations will also lose authority over their citizens.