Not a currency, dangerous for taxpayers… The US government publishes a rant against Bitcoin (BTC)

No to Bitcoin (BTC), yes to a central bank digital currency (MNBC). This is the idea that seems to emerge from an economic report from the US government, which is particularly hostile to cryptocurrency. A look back at Joe Biden’s strategy, and what it could bode for cryptocurrencies.

Pas une monnaie, dangereux pour les contribuables… Le gouvernement américain publie un brûlot contre le Bitcoin (BTC)

The US government is up against Bitcoin

President Joe Biden has sent Congress his economic report, which contains, among other things, the annual report of the government’s economic advisers. Rarely, Bitcoin (BTC) and cryptocurrencies are mentioned a lot, and not in a particularly positive light. Cryptocurrency is also the subject of an entire section, baptized “The perceived appeal of crypto-assets».

In this section, the report describes how Bitcoin works, before concluding that it is not a currency:

Cryptocurrencies are not efficient alternatives to sovereign money such as the US dollar.»

What are they then? The US government sees in cryptocurrencies mostly speculative investments». According to the report, many crypto assets have no fundamental value, which is why they are so volatile. The document also draws a parallel between the redistribution of profits that exist in mechanisms based on the blockchain (notably staking), and the redistribution of profits linked… To the US dollar:

In advanced economies like the United States, profits from issuing sovereign currency benefit taxpayers because the latter reduces the need for taxation. Therefore central banks effectively redistribute these profits as government revenue.»

One can only raise eyebrows at this argument, when the country has been subjected to very high inflation, and the central banks of major economies have had to meet recently to support the dollar.

? To go further – Purchasing power and cryptocurrencies: can they help protect against inflation?

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Cryptocurrencies, a danger for consumers according to the US government

The rest of the report presents the crypto ecosystem as a den of mobsters, that would endanger American consumers :

Many participants in the crypto-asset industry do not comply with existing laws and regulations, and some of the most illegal common activities in the industry are scams aimed specifically at retail investors.»

Separately, the report raises the issue of crypto assets who would befinancial securities» (securities). This is not trivial: a few days ago, SEC Chairman Gary Gensler called Ether (ETH) “security“. It is on this point that part of the regulations to come in the United States are articulated. If cryptocurrencies of this type are considered securities, they will have to comply with the requirements of the SEC, and these will be a considerable drag on the ecosystem.

The report of the American government therefore clearly shows that the race for regulation is well and truly onand that companies or organizations related to cryptocurrencies could have concern, at least in the territories where the American regulators can reach them.

? To read on the same subject – SushiSwap in the viewfinder of the SEC – Is the regulator now attacking DEXs?

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Source: United States Government Report

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