Malta’s Government May Test Cryptocurrency in a Regulatory ‘Sandbox’

Malta’s Government May Test Cryptocurrency in a Regulatory ‘Sandbox’

Cryptocurrency is finding acceptance among more and more governments and the latest to join the list the government of Malta. The government of Malta

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Cryptocurrency is finding acceptance among more and more governments and the latest to join the list the government of Malta. The government of Malta is keen to find out the effects of cryptocurrency on its economy and wants to run a trial to determine the same. The technology will be tested within a controlled environment where legislators can regulate the currency. The government of Malta has been open to the idea of cryptocurrency and the prime minister himself has supported the creation of a national strategy in April.

The auditing giant PwC had compiled a report advising the government to run a ‘sandbox test’ before introducing cryptocurrencies into the market directly. This will allow the government to determine beforehand the impact of a such a development on the economy. It will also spare the economy of any downfalls of introducing cryptocurrencies to the market. The ‘sandbox test’ will improve the standing of the nation in the sector of blockchain technology.
The government spokesperson has not revealed any specifics of the trial. But if the news is true, then it could change nation’s policy on the blockchain. Whether the change will be favorable to blockchain technology or not can only be determined once the results of the trial are out. As one of the key reasons governments are hesitant to adopt cryptocurrencies is that they are unregulated and uncontrolled, trials like this could open up new doors for the technology.
Tests like this are not new and other governments have previously conducted such tests to find out what affect blockchain technology will on their economy. The results of these tests have not been consistent and have varied from country to country. Netherland’s Central bank, in 2016, tried to study the bitcoin in its early stages to determine how the network would be like in 2140. ‘Sandbox Tests’ like the one being conducted in Malta are certainly a good way to test blockchain technology before taking any final decisions on whether or not they can be introduced into the economy and if they are introduced, what restrictions should be placed on them.

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