ABSTRACT
Chapter 4 provides an overview of the views of regulators in key states. It considers the issues arising from a lack of central authority that is the consequence of the peer-to-peer basis on which cryptocurrencies operate. The chapter also considers the impact of the rise of cryptocurrencies on the banking system and the potential impact on money supply. It goes on to consider alternative approaches including airline frequent flyer miles and the Terra currency. The chapter puts the cryptocurrencies in the context of countries with weak currencies and weak democracies, countries positioning as global currency hubs and countries with a tendency towards freedom and innovation. This is followed by an overview of the approach being adopted in the US, China, South Korea and India. Finally, there is a consideration of the potential problems caused by fraud and financial crime, the desertion of fiat currencies, tax and the potential for their use as a vehicle for illegal behaviour.
