CRYPTOCURRENCY BANNED IN OTHER NATIONS? Flashcards
Which nations have outright bans on Bitcoin use?
Nepal, Algeria, Egypt, Morocco, Turkey, Iran, and others.
What is the legal status of cryptocurrencies like Bitcoin in China?
Chinese banks are prohibited from offering any services related to cryptocurrency trading, including buying, selling, or investment.
Individuals may hold cryptocurrencies, but financial institutions cannot facilitate transactions.
Describe the impact of China’s cryptocurrency crackdown on Bitcoin prices.
China’s ban led to a significant decline in Bitcoin prices, causing a drop of approximately 30%. This highlights the influence of major market players on cryptocurrency values.
Why might a country choose to ban cryptocurrencies?
Volatility: Cryptocurrencies are known for their price fluctuations, raising concerns about financial stability.
Criminal Activity: The anonymity of some cryptocurrencies can make them attractive for money laundering or illegal transactions.
Protecting National Currency: Governments may want to protect their own currencies and prevent competition from decentralized systems.
Do all countries treat cryptocurrencies the same way?
No, there is a wide range of regulations across the globe. Some nations have outright bans, others have restrictions, while some are more accepting and open to cryptocurrency innovation.
Which country was the first in the world to adopt Bitcoin as legal tender?
El Salvador
Name a country that has its own sovereign cryptocurrency as legal tender, alongside the US Dollar.
Marshall Islands (The cryptocurrency is called the Sovereign or SOV)
Which country uses a cryptocurrency called the Petro as legal tender?
Venezuela
True or False: The US Dollar is a legal tender in both El Salvador and the Marshall Islands.
True
Why might a country consider adopting a cryptocurrency as legal tender?
Possible reasons include:
Financial inclusion: Reaching unbanked populations.
Faster and cheaper remittances: Especially important for countries receiving money from citizens abroad.
Potential hedge against inflation: (This depends on the specific cryptocurrency)
Attracting investment and innovation: Appealing to the technology and cryptocurrency sectors.
Which international organization was the first UN body to accept cryptocurrency donations?
UNICEF (United Nations International Children’s Emergency Fund)
What was the name of the world’s first blockchain bond, launched by the World Bank?
Bond-i
Describe the World Bank’s involvement with blockchain technology.
The World Bank launched the world’s first blockchain bond (“Bond-i”) in 2018. Blockchain bonds use blockchain to track ownership and transactions.
What kind of group has the World Economic Forum (WEF) created to explore the potential of cryptocurrencies?
The WEF has a dedicated working group focused on blockchain and digital assets.
Describe the specifics of UNICEF’s cryptocurrency donation program.
UNICEF accepts donations in Bitcoin and Ethereum.
Donations can be made through the UNICEF Cryptocurrency Fund.
The Fund is used to support UNICEF’s work on technology innovation for children, including projects involving blockchain and artificial intelligence.
