Cryptocurrencies’ rise is inevitable despite government curbs, says Templeton’s Mobius
Mobius says that governments would find it hard to control cryptocurrencies because it means controlling the internet space
Cryptocurrencies were unlikely to go away any time soon despite attempts by governments to try and control their expansion, said Mark Mobius, executive chairman of Templeton Emerging Markets.
Also known as digital currencies, with the best known being bitcoin, they use distributed ledgers known as block chains to track transactions. There are now hundreds in existence, as the currencies’ independence make them attractive to some users.
The rise of cryptocurrencies was taking place because they allow for a very fast and convenient means of borderless transaction, and where access to US dollars was not needed, Mobius said.
Governments would find it difficult to control virtual currencies because it would mean controlling the entire internet space. The operations of cryptocurrencies involve crossing national lines, using block chain and the cloud, he said.
China said on Monday that it had banned the practice of initial coin offerings (ICOs) – fundraising by the issue of digital currencies outside the regulatory framework – and stepped up its policing of the trading of digital coins to ward off financial risks and potential social disunity.
“China’s government has realised what other governments haven’t, and that is the danger of cryptocurrencies being used by terrorists and by illegal operators,” Mobius said.