Despite all the positive impact that cryptocurrency and decentralized finance have had on many developing countries, there are still hurdles standing in the way of mass adoption. The two main problems to consider are the impact of cryptocurrency mining on the climate and the difficulties for governments to regulate a decentralized financial system.
<aside> 💡 Blockchain and crypto produces a lot of CO2 in the mining and facilities.
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<aside> 💡 Mining operations moved to developing countries where energy is cheap and easier to burn fossils fuels due to less regulations.
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<aside> 💡 Stricter regulations on Bitcoin mining are the current solution for countries to reduce emissions, but this wont stop global warming.
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<aside> 💡 The solution most of these countries should explore is proof of stake, since its more energy efficient, and not increasing regulations.
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<aside> 💡 Difficult to apply existing AML/CFT recommendations to cryptocurrencies
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<aside> 💡 Majority of regulations are targeted towards connection points between traditional finance and decentralized finance (ie Centralized Cryptocurrency Exchanges)
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