Is the US Government Finally Accepting that Bitcoin is a Threat to the USD?
No matter how much we deny it, Bitcoin is the future of global trade, and will most probably dethrone the current dominant currency, the US Dollar. While the world of crypto and quite a few economists believe this, the US never reacted to crypto until recently.
However, in the past few weeks, the US Government seems to be taking Bitcoin very seriously, with major institutions commenting on cryptocurrencies, their legality, whether they should be regularized or banned. These comments seem to have intensified after Facebook unveiled its much-awaited cryptocurrency, Libra, which was launched on June 18.
Since Libra’s unveiling, regulators across the globe, and most prominently, the US Congress has criticized the crypto industry, and have called for a blanket ban on decentralized currencies. Interestingly, many are viewing this as a validation that Bitcoin and crypto are indeed the future, and the US Government sees BTC as a potential threat to the USD.
Here are some of the most important government organizations who have reacted on crypto:
Federal Reserve Bank
It all began from the Fed’s side when the former chair Janet Yellen stated in October 2018 that Bitcoin could be a useful currency. A few months later, in March 2019, the US central bank decided to analyze the collapse of the Bitcoin market. These were the initial indications that Washington was taking Bitcoin as no joke. And more recently, just a few days ago, Fed chairman Jerome Powell compared Bitcoin to Gold, which is a validation in itself.
Securities Exchange Commission
Validation from the chief securities and investments regulator is extremely important from a general investor’s point of view. This, too, came last month, when the SEC confirmed that Ethereum is a usable legal currency while hearing a lawsuit. This confirmation was a landmark decision, as it opened the debate on regularizing crypto in the country, with SEC taking several steps in this direction.
US Congress Calling For A Blanket Ban
After the US Congress has been quite hostile towards legalizing decentralized cryptocurrencies in the United States. In May 2019, Congressman Brad Sherman called for a complete ban on cryptocurrencies, stating that digital currencies are a threat to Washington’s global dominance. Sherman’s remarks were in contrast with fellow Congressman Tom Emmer’s praise for Bitcoin and blockchain, made during the DC Blockchain Summit earlier in March this year. Another Congress Rep, Maxine Waters stated Facebook’s Libra must be stopped before it starts competing with the dollar.
US President Donald Trump
President Donald Trump jumping in the crypto war was the best thing that could happen, believe many crypto experts. He stated he isn’t a fan of Bitcoin and warned Facebook. Why would the world’s most powerful state head tweet about something he isn’t a fan of, even if no one asked him to do so? The answer is quite simple that Bitcoin has become too big to be ignored. The entire crypto industry has come to life after his comment, with many predicting that Trump’s comments will instigate the next bull run!
Yes, the Bitcoin is having a kind of a rough patch since the last few days, but it is worth remembering its phenomenal recovery from around $3,000 in February to $11,000 as on date. If those who ever wanted a confirmation that Bitcoin and crypto are not just bubbles, the hostility from the Congress, statements from SEC, and finally, from the President himself, are the biggest examples.
