'Nothing Grows as Fast as Cryptocurrency': Kyrgyzstan Deputy of Parliament

Kyrgyzstan is opening discussions around cryptocurrencies. “Nothing grows as fast as cryptocurrency,” Karim Xanzheza, Deputy of the Parliament of Kyrgyzstan, recently said in a statement while batting in favour of cryptocurrencies. While urging lawmakers to club crypto services under a legal framework, Xanzheza said that Kyrgyzstan could really take advantage of the digital assets sector if timely measures are adopted. As per Britannica, Kyrgyzstan is a small country with a population of around 6.7 million and a GDP of around $8 billion (roughly Rs. 60,839 crore).

Slamming the central bank of Kyrgyzstan for avoiding the up-and-coming digital assets sector, Xanzheza said it is crucial for the country to begin work on a national digital currency, CryptoPotato reported.

The parliamentarian made his case citing the popularity of Bitcoin and Ether along with other cryptocurrencies that have only escalated of late in bigger nations.

Capable of facilitating instant transactions of large sums, cryptocurrencies are also seen as a threat that could challenge the positions of physical currencies.

In order to eradicate this fear, governments from around the world are exploring ‘CBDCs' or central bank digital currencies. CBDCs are built similar to cryptocurrencies on blockchain technology, but they are controlled by the central banks.

Essentially, Xanzheza intends to have Kyrgyzstan join other nations that are looking to explore the crypto sector but within the limits of their laws.

The development comes after thousands of illegal crypto mining hubs were shut down in Kyrgyzstan last year. The country reportedly regulates crypto mining via taxes.

Many nations, are taking a regulatory approach towards the crypto sector in order to harness the power of blockchain-based payment systems.

The tax laws imposed by India on virtual digital assets, for instance, have gone into effect on Friday, April 1. India aims to bring crypto under its tax regime as part of its plans to keep an eye on crypto movement and curb potential risks of its misuse for illicit activities like money laundering and terror financing.

Vietnam, Australia, Dubai, and Brazil have also begun taking their first steps towards making the crypto sector adhere to their respective laws.

Remittance-depended nations such as Tonga and Nigeria have also shown interest in the crypto sector, in order to save the service fee that international money transfer platforms like Western Union slash away.

Using crypto assets to facilitate cross border money transfers would not empty the pockets of those nations that depend on their diaspora working abroad to send back money and keep their country's economy alive and healthy.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.