In the recent months we’ve experienced fantastically disruptive ransomeware attacks to one of our major food processor, JBS foods that threatened food production; on a critical infrastructures colonial pipeline, which resulted in gasoline shortages for weeks; and many more U.S businesses including hospitals, school districts, smalls businesses and even small towns have been disrupted by ransomeware epidemic facilitated by cryptocurrencies.
The aforementioned epidemic begs the question of how should the government address the issue. In as much as the priorities seems clear, so far the Biden administration seems to be in quagmire. Moreover, the last three presidents have stated that the U.S is vulnerable and should have a strong defense. However, there is the syndrome called follow the money, hence their focus seems to be more directed towards Cyber offense than defense.
Martin Wolf, a prominent economic analyst in recent Financial Times essay dubbed the risks and chaos produced by these unstable private money as a libertarian fantasy. moreover, with 8,000 cryptocurrency already circulating, it is the new mom-and -pop cottage industry. Wolf argues that in order for the government to effectively regulate cryptocurrencies, the central banks should create their own official digital currencies and make cryptocurrencies illegal.
Any attempt of government attempt to regulate cryptocurrency will be a difficult endeavor. However, the best case for the government to have any influence and possible render any kind of regulation is by creating a dominant cryptocurrency– perhaps backed by gold. A dominant cryptocurrency build trust from digital currency community and essential may give the government a firmer ground to impose any regulations.