Former Secretary of State of the United States, Hillary Clinton. He warned nations around the world on Friday to take the growing popularity of cryptocurrencies very seriously. Because these digital assets possess the potential to undermine the power of nation states and the critical role of the US dollar in the global economy.
“One more area that I hope nation states will start paying more attention to is the rise of cryptocurrencies. Because what seems like a very interesting and somewhat exotic endeavor to literally mine new currencies to trade in, has the potential to undermine traditional currencies, undermining the role of the dollar as a reserve currency, to destabilize the nations of the world. ‘ Hillary Clinton manifested during a panel discussion at the Bloomberg New Economies Forum in Singapore.
Hillary Clinton’s comments come as various countries face both adoption and regulation of cryptocurrencies.
As an example, China has banned the use of cryptocurrencies and all related activities. In addition, the recently passed $ 1.2 trillion US infrastructure bill includes stricter rules on taxes on cryptocurrency trading. Meanwhile, some developing Central American nations are embracing cryptocurrencies. El Salvador adopted Bitcoin as legal tender in September with the aim of improving and decentralizing its economy.
The United States and its conflict with cryptocurrencies
The world’s largest companies are already using Blockchain technology, including Amazon, Cargill, CVS, IBM, Seagate, and Visa. Senior CEOs including Elon Musk, Richard Branson, Jack Dorsey, and US government officials such as Miami Mayor Francis Suarez and incoming New York Mayor Eric Adams have voiced support for cryptocurrencies.
Meanwhile, the United States has become the world’s largest victim of ransomware attacks, or “data hijacking” in Spanish. The nation paid more than $ 131 million in cryptocurrencies to cyber criminals between July 2020 and June 2021, according to a study de Chainalysis.
Most of the cyberattacks were associated with various cybercriminal groups based in Russia, added the study.
“Investing in cryptocurrencies goes against all basic investor protection rules.” Economic regulation expert John Reed Stark told Insider. Who was the head of the Internet Law Enforcement Office of the US regulatory institution SEC.
“Bitcoin and other cryptocurrencies are traded on platforms that do not have any of the security mechanisms that traditional exchanges have.” Stark added.
However, various experts have questioned whether cryptocurrencies such as Bitcoin or central bank digital currencies (CBDC) such as China’s digital yuan will have much effect on the dollar’s reference as a world reserve currency. Although the development of central bank digital currencies could reduce the demand for dollars as transaction instruments.