Trust less Trust With Unsavoury Reputation: Blockchain System
- NLR Journal
- Apr 9
- 1 min read
By Shailja N. Vyas, Research Scholar at Sardar Patel University of Police, Security and Criminal Justice, Jodhpur, Rajasthan.
Abstract
Blockchain technology and cryptocurrencies are at the forefront of a financial transformation, challenging established banking systems while bringing important ethical and legal issues to light. This article examines the complexities surrounding blockchain, which is recognized as a mechanism for enhancing financial autonomy, yet is increasingly associated with unlawful activities such as money laundering, ransomware attacks, and trade on the darknet. Although decentralized finance (DeFi) and cryptocurrencies offer prospects for greater financial inclusion and transparency, they simultaneously create vulnerabilities for fraud, Ponzi schemes, and transactions that lack oversight. The emergence of Central Bank Digital Currencies (CBDCs) serves as a balancing force, providing government-backed digital assets with regulatory supervision, albeit with potential concerns regarding privacy and centralized authority. As nations across the globe work to establish regulations, the conversation becomes more urgent: Will blockchain serve as a liberator or a threat to the global financial landscape? This article thus, scrutinizes the balance between innovation and security, emphasizing the immediate need for legal structures that deter criminal exploitation without hindering technological advancement. With the rapid evolution of financial markets, the future of cryptocurrencies relies on their capability to navigate regulatory environments while preserving the essential principle of decentralization. As blockchain continues to transform economic frameworks, it is vital to comprehend its inherent risks and benefits—not solely for lawmakers but for all stakeholders engaged in the forthcoming digital economy.
Keywords: Bitcoin, Blockchain, Cryptocurrency.
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