Opinion: Banning cryptocurrencies is a futile exercise that threatens innovation

Professor Rabelani Dagada of the University of Johannesburg in South Africa, in a blog on ITWeb, called resistance to the development of digital assets futile. He argued that banning cryptocurrencies threatens innovation.

As an example, Dagada cited the Libra project—a global stablecoin backed by a basket of currencies and other assets. After the 2019 announcement, the team faced a barrage of regulatory criticism.

In April 2020, the association abandoned the original concept. In May, Facebook renamed the digital wallet for the stablecoin from Calibra to Novi. In December of the same year, the Libra Association renamed itself to the Diem Association.

\”To fully assess regulators’ rejection of digital currencies, one only needs to study their attitude toward Facebook’s cryptocurrency called Diem,\” wrote the professor.

As an example of resistance to innovation in the past, Dagada recalled Britain’s Industrial Revolution, when local workers struck against factory machines. Ultimately, the technology boosted labour productivity.

\”Recently, residents of the United Kingdom and South Africa wrongly blamed 5G technology for the COVID-19 pandemic and destroyed towers,\” Dagada added.

The professor also noted the inevitability of cryptocurrency adoption, something large business has already begun realise. He listed companies accepting Bitcoin as payment: PayPal, Starbucks, airBaltic, Pavilions Hotels & Resorts, AXA and others.

\”If South Africa wants to become a hub for cryptocurrencies, policymakers and regulators should complete the development of a regulatory framework,\” the expert wrote.

In September, Lesetja Kganyago, chairman of the South African Reserve Bank, refused to recognise Bitcoin as a currency.

In the same month, the Financial Sector Conduct Authority urged local investors to “caution and vigilance” when dealing with the cryptocurrency exchange Binance.

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