The Treasury Has Questions Regarding Cryptocurrency
A number of months have passed since the crypto executive order was issued. The praise something which Biden received because he was the only acting president to start engaging in continuing to push for crypto regulation was short-lived, however, as soon as traders and analysts everywhere saw that it did nothing to end the bearish conditions that the cryptocurrency market had been going to experience since the commencement of the year, the praise quickly faded away.
At that time, the price of bitcoin, the digital currency with the largest market capitalization in the world, was trading in the high 30,000 dollar level. These days, one unit of the currency may be purchased for approximately $20,000 less than it used to. To put it mildly, it was an awful sight…
Additionally, according to rumors, the presidential order made it possible to create a digital version of the US dollar. To be fair, this was an idea that had been pushed for a long time by Jared Kushner, who is the son-in-law and a former advisor to President Donald Trump. However, it is arguable that Kushner received little to no attention for his actions, and Biden – staying in line with his knack for plagiarism – issued the order for a digital dollar in his executive decision.
As a direct result of this executive order, the United States Treasury is currently doing study on the potential and threats that are traditionally associated with the cryptocurrency market. The Treasury is requesting the assistance and counsel of central banks in order to determine what measures would be necessary to govern stable currencies and maybe issue digital currencies issued by central banks (CBDCs).
In a statement, Undersecretary for Domestic Finance at the Treasury Department Nellie Liang provided the following explanation:
The use of digital assets by consumers may bring both potential benefits, such as the ability to make payments more quickly, and potential concerns, including those related to the possibility of being defrauded or scammed.
In the realm of digital assets, the question of whether or not there should be regulation has been a source of heated discussion for some time. Many people believe that the cryptocurrency market will never become mainstream or respectable if it is not subject to regulation. Because of the prevalence of deception, cons, and illegal conduct within the sector, rules really need to be established in order to safeguard both the playing field and the individuals that participate in it.
The Concept of Regulation is Unpopular with Some People.
On the other hand, there are many people who believe that regulation is incompatible with crypto and everything it stands for. They claim that the area for digital currencies was first formed with the intention of providing people with complete monetary independence and autonomy. They would not be subject to the decision-making power of third parties or traditional financial institutions, rendering them immune to snooping eyes and unaffected by intrusive scrutiny.
They fear that once regulations are put into place, the cryptocurrency business will become as centralized as the traditional banking system that it was created to combat. As a result, they are concerned that things could someday get out of hand and that cryptocurrency would become too subject to the influence of governments, which would ultimately negate the purpose and aspirations of cryptocurrency.