Cryptocurrency a tricky subject

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Dear Editor

Re: Samoa has entered unchartered waters 

You bring some valid points and good rebuttal to the original piece. I take a similar position, albeit from a somewhat different angle.

The government’s position, lie so many, may come from a limited amount of information on cryptocurrency, in general. I say this only from the perspective that the decree lumps bitcoin and some real cryptocurrencies into obvious MLM Ponzi scams like Onecoin, ILCoin, etc.

As someone involved in blockchain technology and actual cryptocurrencies for over a decade, it’s disconcerting to see the volume of con-artists and scams in this space taking advantage of the hype which has surrounded bitcoin, ethereum, (etc) open-market price charts.

Unfortunately, while cryptocurrency and blockchain technologies promise to bring new and potentially much better solutions to the corruption of so many legacy banking cartels who have famously manipulated money, credit, and markets; smaller time crooks also are the first to adopt and exploit new technologies for the purpose of deceiving and under-educated public.

Cryptocurrency like bitcoin (and a very small handful of others) lays the foundation to very real and very important change; while decentralized application platforms, such as ethereum, can enable safer and more secure land title records, notarization of documents, maintenance safety records for the transportation industry, health care record protection accessibility, and numerous other verticals.

Over-regulation is not the answer as it will stifle innovation and raise the barriers of entry. However, at the same time, obvious and blatant Ponzi fraud schemes are becoming the bad apples which destroy the whole bunch.

Ponzi/ pyramid scams like Onecoin and ILCoin, and cash gifting or lending schemes like MMM Global and BitConnect are illegal throughout the civilized world. Govt’s just nee to enforce those laws already on the books and have better means of identifying and prosecuting such schemes - without hampering those platforms which can truly bank the unbanked and disrupt entire industries, enabling more equal access to the common people, in order to level the playing field.

It’s a tricky subject, but one which should be navigated very cautiously, and without “blanket solutions” affecting also the good players in this field.

Thanks for you time.

 

Tim Tayshum

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