Before the challenge of regulating cryptocurrencies, it is necessary to debate their idiosyncrasies, as well as their context. This means assessing the support structure for digital currencies and their relationship with financial transactions.
Blockchain technology recognizes the supporting infrastructure of digital currencies. This is a decentralized database option with the possibility of systematized and encrypted records. Despite being a 15-year-old technology, the truth is that it has evolved significantly; as, at the moment, it is used in different areas of activity. Examples are agriculture, construction or sport.
However, the focus of this publication continues to be the financial dimension; and the impossibility of changing the record making it ideal for financial transactions or confidential data. And, as the process is auditable, the ability to trace itself from origin to completion does not require the intervention of intermediaries.
Still, it is important to analyze the following assumptions:
- Is the origin reliable? What is the way to evaluate it, especially since there is no guarantee of constancy or in the event of “bankruptcy” of mining machines to safeguard deposits?
- Is context immutable? Contrary to what some authors argue, the impossibility of editing the record in the database is just one component of the equation. What is the safeguard in case the mining context or the owner of the respective machines changes?
- Are contracts truly smart? In other words, its self-execution depends on the conditions created and whose compliance must be complete (point in favour); However, these contracts comply with which legal regulations? They are structured according to the needs of both parties or arise from impositions associated with the technological context (for example, the mining context). And, to what extent are acceptors truly informed?
And, in practice, what is the true impact on financial transactions? Wallets, commonly known as wallets, allow quick payment via associated cards with effectively lower costs; and, in high-value transactions, a shorter execution time. However, the total lack of connection, similar to the psychological attitude towards “plastic” money, is a high risk for unbridled consumerism.
