Governments and institutions around the world are paying increasing attention to cryptocurrencies (CC) and the technology that underpins them: Blockchain. Some of the attention is negative, but overall, it’s clear that more and more of the attention is positive, supportive, and exploitative. As the world of business and investment becomes more aware of having a disruptive force in its midst, it becomes imperative to examine business processes in this new frontier and compare them to the relatively old, time-consuming and expensive processes they now have. New technologies need new investment capital to grow, and with that growth comes bursts, false starts, and controversy.

Developments in the world of CC and Blockchain are moving fast and furiously as governments and institutions scramble to take advantage of the technology, tax all profits, protect their investments, and protect their constituents and customers—a complex balancing act that goes a long way. by explaining why many seem to go in different directions and change direction frequently. Here are some of the latest developments that serve to illustrate that CC and Blockchain are gradually becoming accepted into the mainstream, but still grappling with regulation, control, and stability:

• Uzbekistan will publish its plans to regulate Bitcoin in September 2018, with a Blockchain “skill center” set to go live in July.
• Kazakhstan has signaled its desire to copy Singapore’s Blockchain permissiveness.
• Belarus has announced that it wants to create a hospitable environment for Blockchain, as an innovative financial transaction technology.
• Venezuela has created the “PETRO”, a CC set up to raise cash as Venezuela nears economic collapse. The hope is that it is a way around the sanctions that prevent Venezuela from raising money on global bond markets. President Nicolás Maduro claims that PETRO raised $735 million on its first day, a claim that has not been substantiated. Maduro sees the PETRO as “the perfect kryptonite to defeat SUPERMAN” – his analogy for the sanctions imposed by the US, thinking that this currency frees his country from the control of banks and governments. Perhaps he doesn’t see that PETRO was started by a government – ​​his own.
• TD Canada Trust has become the first Canadian bank to join some UK and US banks in banning the use of credit cards to purchase CC.
• South Korea is heading towards Bitcoin legalization, indicating that it will view Bitcoin as a liquid asset. Since South Korea is at the forefront of the DC market, the impact of its decisions will be significant and global. Japan has already taken those steps, making Bitcoin transactions more transparent, more regulated, and 100% legal.
• BlackRock, the world’s largest investment company, continues its bullish forecast for CCs, saying it sees “wider use” ahead.
• Romeo Lacher, president of the Swiss stock exchange, believes that launching a crypto version of the Swiss franc has many advantages, and his organization would support it, adding that he “doesn’t like cash.”
• China’s largest online and brick-and-mortar retailer, JD.com, has announced the first four startups for its Al Catapult Blockchain incubation program. The Beijing-based program, which has seen applicants from as far away as Australia and the UK, aims to use the company’s vast Chinese infrastructure to develop new blockchain and artificial intelligence applications.

With all the global activity going back and forth, it is clear that Blockchain is the disruptive technology of this age, and CCs are only one facet of the possibilities enabled. Much like the internet investment explosion of the 1990s, Blockchain and CC investments will have winners and losers; however, we do not want this to become the huge bubble that destructively burst with many early DOT COM investments in the 1990s. What we do want to see is a well-reasoned approach to Blockchain developments and investments.

Volatility will continue to be the norm in this market space for some time as we see increasing acceptance, innovation, and regulation. Failures will occur and successes will emerge, prompting governments, institutions, investors and innovators to continually adjust their processes and thinking. Volatility is normal and healthy at this stage.