A few days ago the current American president made a statement on his social media regarding cryptocurrencies and the digital currency market. The White House seemed to want to start a war against Bitcoin and asset companies, which demonstrates the State’s concern about this kind of investment.
Donald Trump made it clear that he does not support the use of digital currencies, he does not sees it as actual money, and highlights the currencies’ high volatility. Trump said he is afraid of the increasing use and support for illicit behavior, such as traffic and other illegal activities.
The north-American president is not the only antagonist in the cryptomarket since many other countries’ authorities also positioned themselves against digital currencies in the last months.
Worldwide authorities are afraid of what these electronic currencies might represent to the State since it has no political control.
Regarding the USA, BTC and Libra seem to attack the monetary monopoly in the country, indirectly. The authorities are concerned to lose power over the market dynamic of the assets, while the growing currencies tend to keep getting stronger.
Regulation of Cryptocurrencies
Facing Trump’s alarm regarding the lack of regulation on the encrypted market, the secretary of the American Treasury, suggested to regulate cryptocurrencies in the country. After evaluating the field clearly, the American government seems to willing to create organizational approaches and regulate the use of these currencies.
The secretary Steven Mnuchin is also not a big fan of this technology, and even affirms that the field can become a threat to the USA’s national security. He seems to have similar worries to what the president (and other authorities) present, such as the use of the assets for illegal means.
Governments express strong concerns about Facebook’s financial ambitions, which announced the future launch of the currency Libra a few weeks ago.
Regulate the cryptocurrency field is not that bad, but personal concerns from the government are clear. The State faces cryptocurrencies as national threats and, on the other hand, the population (or at least part of it) seems open to the new technology.