Cryptocurrency: Biggest  Financial  Challenge 

Having  been introduced a few years ago,  cryptocurrencies  are now on a tremendous  increase.  Their  usage  and  acceptability  has increased  gradually.  

It is now very important  for the underwriters to internalise what the cryptocurrency actually means in terms of how it works,  risks and issues.This is because the usage of the <u>cryptocurrency</u> continues to increase  with time .This can be achieved by establishing guidelines for adapting financial underwriting to new asset class. 
Cryptocurrency is best known now as the decentralized digital medium of exchange based on technology. One of them  being bitcoin which  was released  in 2009. The maintenance  of the value of the cryptocurrency is only done by the user via the internet . No government  and banks  involvement  in the maintenance of the value of cryptocurrency. 

Regulations of cryptocurrency 

Although the cryptocurrency  is nowadays  well known  in several countries,  some countries  still do not allow  the use of the cryptocurrency.  Some countries  have banned  the use of cryptocurrency  while others have put sanctions  on the use of the cryptocurrency.

 Such regulations include  banning <u>crypto exchanges</u> and inhibiting  financial institutions from dealing  with crypto. Other regulations may include application of taxation  laws to the users so that they avoid  using it and terror financial laws.

The cryptocurrency regulation changes  regularly to impose new sanctions on how the cryptocurrency can be used effectively.  This has made the US have a plan on how to regulate the cryptocurrencies. Currently  the world bank is working  on how the new cryptocurrency  called  the CDBC can be used.   

The research  is carried  out by Eighty-nine countries on how the <u>CDBC</u>  can be launched through  researching, developing and piloting CDBC. Currently , only nine countries  have launched  the use of the CDBC

Cryptocurrency salaries

The payment  of the employees is nowadays  being  done using cryptocurrency.  This is because  of the value of the cryptocurrency increasing regularly. This is mostly done in the US market.
Factors to consider in financial  underwriting 
Collect appropriate financial details
Thorough  research  should  be taken  through  questionnaires  to ensure that the correct  details  are received about  the cryptocurrency.