There is a saying in the cryptocurrency community, “Not your keys, not your coins,” which means that if you store your cryptocurrency in a third party safe, you won’t actually own those coins. The device that controls the wallet’s private key ultimately has power over it. Self-service wallets or non-wallets allow people to receive, send and store cryptocurrency without the need for a trusted person.
As life becomes more digital, the use of cash in transactions and as a store of value has dropped dramatically. Those who in our economy have access to digital resources are blocked by online transactions and monetary services. However, not many people trapped in the money economy can afford to shop online or take advantage of the efficiency of digital transactions.
Relatives: Americans don’t want to give away their paper money, but they should
According to a 2017 FDIC survey of non-bank and non-bank households, approximately 6.5% of US households do not have accounts with insured financial institutions. About 19% of households are underbanked, which means that although they have at least one account with an insured institution, they still use financial products such as payday loans or cash verification services. The reasons for the weakness of banks in these people may be different from previous financial mistakes, distrust of financial institutions, lack of funds for a minimum balance, or a desire to avoid commissions. These reasons remained relevant two years later, according to a 2019 FIDC study, with mistrust among the main reasons.
Self-hosted wallets create a statement of the value of cryptocurrencies. This gives everyone the opportunity to have secure and equal access to a large and ever-growing number of financial instruments like DeFi or Staking, which are activated using blockchain technology. Individuals who own these wallets can access these tools and send money securely without a third party intermediary – an impossible achievement before the invention of Bitcoin (BTC). These peer-to-peer transactions do not require an intermediary because it is an act of “no intermediary” that provides the unique efficiency and economic similarity that cryptocurrency provides.
By regulating the use of hosted wallets, the US government will create a barrier for non-bank or non-bank individuals from accessing cryptocurrencies and prevent the greatest incentives for economic integration the world has ever seen. At the same time, they will also give more options to cryptocurrency brokers. All that is required is an Internet connection to interact with the global economic system. This is an important step forward in ensuring financial freedom for all and providing financial services to the billions of people who currently lack access to them. By removing this feature, the authorities will render the cryptocurrency useless to Americans without specific identification.
On the subject: How US authorities are using old money laundering tools to fight cryptocurrencies
In addition, wallets are not just digital bank accounts – they are digital vaults. A self-service wallet allows people to store all kinds of digital assets, from important documents to cryptocurrencies and cryptocurrencies. It would be ridiculous to give up the right to physical security. Cancellation of the right to an electronic safe is a violation of American rights.
Cryptocurrency has seen more growth and more wealth than any other invention in recent history. The United States is at the forefront of this boom, and many companies have shown explosive growth, resulting in thousands of new jobs and increased economic independence for their citizens. The introduction of a rule requiring conservatives to be a watchdog would put the United States behind the top eight, suppressing innovation and preventing widespread adoption. As other countries continue to use cryptocurrency in its most beautiful and fluid form, the United States will stifle growth fueled by the free cryptocurrency market.
The blockchain system is still in its infancy and its true potential has never come close to realizing. Regulating such an important aspect of this new and useful technology would have disastrous consequences for innovation in the crypto space and would potentially prevent the future invention of revolutionary products and services that remain on the blockchain.