Cryptocurrencies Entered The White House Report! What Was Said? – Cryptokoin.com

The White House pointed to the possibility of risk for cryptocurrencies in its economic report for 2023. The report states that cryptocurrencies are primarily speculative investment vehicles and casts doubt on the perceived benefits of cryptocurrencies. Here are the details…

White House report did not present a good outlook for cryptocurrencies

The report presented by the White House Economic Advisory Council on March 20 underlines that in the US, crypto money is not as effective a trading tool as the US dollar. According to the report, while some cryptocurrencies are permanent, most pose various risks. It is stated that these risks especially target financial markets, investors and consumers. The government report also lists risk and volatility as additional disadvantages of cryptocurrencies.

It should be noted that the economic report has been published since 1950 and cryptocurrencies were featured for the first time this year. In the report, developments such as the TerraUSD collapse and FTX bankruptcy observed in 2022 were used to point out the potential losses of the crypto space. However, according to the report, the collapse of Silicon Valley Bank marked the crisis overflowing into the traditional banking industry in the wake of crypto sector bankruptcies. Cliff Marriott, Goldman Sachs’ co-head of technology, media and telecommunications in Europe, referred to the crisis as a “Lehman moment” for the tech industry.

DeFi, mining and PoW systems were also targeted

The White House also attacks Bitcoin mining as an “energy-consuming beast” in the report. The report references Cambridge University research in 2022, which claims that Bitcoin mining consumes more energy in 2021 than many countries, including Finland, Belgium and Chile. While the report claims that environmental damages such as noise, air and water pollution are higher, no distinction is made.

Analyst Announces 20 Promising Altcoin Names!

Apart from that, according to the March 2023 report, DeFi applications claim to increase credit availability by reducing brokerage costs. But it poses significant risks to investors and the larger financial system, according to the US government. This is because these platforms usually allow users to trade and trade with high leverage. They can also allow users to perform regulated tasks without complying with regulations.

FedNow praised

The Economic Report also touches on the possibility of introducing a central bank digital currency (CBDC) to mitigate some of the risks associated with the private cryptocurrency industry. He stressed that a CBDC operates “under the supervision of a trusted authority.” cryptocoin.com As we have also reported, last week, the US FED announced that the FedNow Service will start in July. The central bank’s announcement about instant payment options sparked a CBDC trial debate. The report stated that FedNow could be more useful than cryptocurrencies.

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