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Many government bodies find difficulty with digital currency because of its ability to be spent nearly anywhere. Many types of digital cryptocurrency can be exchanged online for elicit items and more under the right circumstances. If more protections were introduced and the creation of blockchain-powered digital “smart money” with certain regulations was introduced (such as in Australia), it could be possible for many government bodies to be more on board with a cryptocurrency.
Under a new partnership of Australia’s Commonwealth Bank, and CSIRO data 61 there’s been a creation of a programmed form of digital currency under a new app. What this money will create is a set of conditions in which there can be controlled spending for the cryptocurrency. These types of constraints would control the total amount that could be traded, the total amount of funding that could be provided for each user in investment as well as some other set items that could be purchased using the currency.
Having these types of constraints with a cryptocurrency could introduce a cryptocurrency that will fall in line with the standards of any government regulatory body. Using smart money could reduce the need for exchanges or stores to introduce spending rules that cannot be made with proper compliance.
The app does introduce some time savings for participants. It estimated that anyone accepting this currency could save hours every week and totaling their transactions and this could eventually represent cost savings at year’s end.
The concept is currently being on trial but it will take some time before the automation process can take place within this new programmed currency. The program itself does have some potential in creating more controls over crypto. The only issue with the set conditions on the currency is that it also introduces a chance for more finite costs associated with trading.
Using current cryptocurrencies, transaction fees are extremely low and the chance for taxation is also not common. By utilizing this type of preprogrammed tracking and having safeguards built right into the currency it is possible that under new set conditions there could be full blown taxation added into the digital coin trading.
A digital currency that has more set conditions in the end is more of a benefit to the establishment as well as to regulatory bodies that are working to keep tabs on the spending of cryptocurrency. These types of digital currencies could represent a big change for consumers if they become more widespread.