As we look forward to a new year, new uncertainties about global currency markets arise. 2017 was a year full of geopolitical events, which solidified some currencies while leaving others susceptible to volatility.

In the coming year, three factors will have a large impact on currencies around the world: the changing landscape of digital currencies, U.S. tax reform, and the continuation of the U.K.'s split from the European Union.

1. The Future of Blockchain and Digital Currencies

Cryptocurrencies are changing the finance environment and will continue to do so, but likely not in the way that people currently expect them to. Over the past few years, bitcoin and other cryptocurrencies, which enable participants to transfer funds without banks, have started to reshape the landscape of finance.

Long aware of cryptocurrencies, especially in light of bitcoin's recent surge in value and popularity, governments have been forced to change regulations and consider changing their own currencies in the process. Recently, the U.S. government introduced Senate Bill 1241 to change the language around the prohibition of money laundering. The proposed bill slightly alters the meaning of the term "money laundering" to criminalize concealment of transactions—in turn, criminalizing cryptocurrencies such as bitcoin for the lack of visibility available into their distributed ledger. Additionally, the United States and other countries are looking at sales tax violations (and taxation in general) of bitcoin-denominated transactions, since tax evasion is easier to commit with the current lack of governmental access and visibility.