Twelve years ago, when the world was coming out of one of the worst financial calamities it had ever seen in a century, it never thought that the Bitcoin cryptocurrency market was worth nothing and could be a major geopolitical player like gold. Crypto at its peak, however volatile, is a $ 3 Trillion(INR 239 Trillion) market. That means it has the power to impact economies in both positive and negative ways.

1. How Banks and Governments are viewing Cryptocurrencies?
Twelve years ago, when the world was coming out of one of the worst financial calamities it
had ever seen in a century, it never thought that the Bitcoin cryptocurrency market was
worth nothing and could be a major geopolitical player like gold. Crypto at its peak, however
volatile, is a $ 3 Trillion(INR 239 Trillion) market. That means it has the power to impact
economies in both positive and negative ways.
Across the world, the views on cryptocurrencies are different and are changing rapidly.
Governments are researching blockchain technology thoroughly, but the central banks'
implication toward crypto is unclear.
An alternate financial system - a digital gold
While the world was shocked by the recent Russia-Ukraine war, every market tumbled, and
yet crypto initially stood firm with gold. This is a big deal since it came a long way from
being labeled as fraud and a Ponzi scheme to being recognized as digital gold.

2. Banks and other institutions, which were against crypto, are now heavily investing in them;
banks like JP Morgan are replacing real estate with crypto as an alternative investment.
Countries like El Salvador and Cuba saw the opportunity of cryptocurrencies being at the
forefront of a financial revolution and recognized them as legal tender. However, citing the
volatility of cryptocurrencies, larger economies like India and USA decided to regulate them
and make them taxable. Also, economically significant countries like China and Qatar
decided to place a blanket ban on the system.
Let us look at how the governments from different continents are dealing with this newfound
technology.
North America
While Canada and the US accept cryptocurrencies as payment and investment and are
mildly regulated, the CRA or the Canadian Revenue Agency has cited that cryptocurrencies
are taxable and will be considered commodities. The SEC or US's Security and Exchange
Commission, taxes crypto on capital gained tax. Both the countries have ETFs on Bitcoin
and have some of the biggest whales on cryptos residing there.
On the other hand, Mexico is unclear on the decision, and many young enthusiasts in the
country anticipate a clear verdict.
South America
Some of the countries in South America, like El Salvador and Chile, have supported
cryptocurrencies and are in process or have already declared Bitcoin as a legal tender,
meaning the citizen in those countries can use Bitcoin as the local currency for day-to-day
life.
Countries like Argentina and Brazil have supported cryptocurrencies and are in the process
of regulating them.

3. Australia
Australia has legalized cryptocurrencies since 2017; they are GST-free and are taxable only
when you cash out. However, New Zealand's IRD or Inland Revenue Department
recognizes cryptocurrencies as real estate and will be taxed accordingly. Other countries in
the continent have an unclear stance on cryptocurrencies.
Europe
While most of Europe is allowing every service that cryptocurrency has to offer, Russia put
a banking ban, and Kosovo put a mining ban on cryptocurrencies. Amid war, the Ukrainian
government restricted its citizens from buying cryptocurrencies from their local currency.
Every country in Europe has some laws regarding cryptocurrencies except the Netherlands.
Africa
The Northern African countries of Algeria, Egypt, and Morroco have put a blanket ban on
cryptocurrencies. Other countries like Nigeria and Nambia have put a banking ban since the
tech is still in its infancy. Zimbabwe's stand on cryptocurrency is still unclear since the
Reserve bank of Zimbabwe has banned the use of cryptocurrencies. Still, the high court
lifted the ban, followed by the notice of objection by the Reserve bank.
Asia
Asia has some of the most diverse sets of opinions regarding cryptocurrencies. But the use
of cryptocurrencies as a domestic means of transaction is prohibited in almost every country
in the continent.
Every country except Israel and Lebanon has placed a banking ban in the Gulf area.
Bangladesh, China, and Nepal from the Indian subcontinent have put a blanket bank on
cryptocurrencies.
In countries like South Korea, there are many trading restrictions, and in India, digital assets
are subjected to both TDS and a flat profit percentage as tax.

4. CBDC
Central Bank Digital Currency is an initiative taken by the reserve banks of the country;
these are the digital currencies issued by the country's central banks. These digital
currencies will promote inclusion ad simplify the policies for digital currencies.
According to new data, there are around 80% of countries researching CBDC and
streamlining the digital monetary flow. CBDC will be the next big thing in cryptocurrencies
since regulation and taxation of cryptocurrencies has proven to be a far more complicated
task than previously thought.
Different countries around the world are approaching this problem of regulating
cryptocurrencies; differently. Some consider cryptocurrencies as real estate, while some as
commodities, but the world is reaching toward a global consensus of being pro-crypto.