The White House economic report slammed the industry, arguing that the crypto industry still poses a serious risk to the financial system.
by the White House Council of Economic Advisers March 20 In the annual economic report presented to Congress on Oct. In this report, mainly some crypto assets while the remaining crypto assets are for financial markets, investors and consumers. continues to pose a risk highlighted.
In this report, which has been published since 1950, the fact that digital assets are included for the first time does not go unnoticed, according to experts, the details of the report. a FUD dissemination tool for the crypto industry was used as
The report last year TerraUSD collapse, BitConnect And FTX various catastrophes in the crypto industry and the ordinary of the crypto ecosystem, including How it could harm the US consumer presented as an example.
If the main FUD basis of the report is crypto-assets do not provide any of the benefits they have claimed so far. was aimed. It was stated that the sector does not benefit the financial structure and consists of supporting prices with restrictive structures such as limited supply:
It has been argued that cryptoassets can provide other benefits, such as improving payment systems, increasing financial inclusion, and creating mechanisms for the distribution of financial value. However, a more complex picture emerges when we look behind the scenes of these arguments. So far, cryptoassets have not provided any of these benefits. The innovations have mostly been about creating artificial scarcity to support the prices of crypto assets, and many of them have no fundamental value.
Other topics addressed by the report are decentralized finance (DeFi) applications and Proof of Work (PoW) mining was done with the system. The White House front described the PoW mining system as useless as it damages the ecosystem in terms of energy consumption and could trigger an electricity crisis.
The report, which argues that decentralized finance applications have an unregulated and autonomous ecosystem, is beneficial for investors and the financial system in such structures. that you pose serious risks underlined.
On the other hand, in this report, which tries to make cryptocurrencies almost dysfunctional, the digital payment system of the US Federal Reserve (FED), which was introduced recently. FedNow’s It was mentioned that it can be much more useful for ordinary users:
Some have suggested that near-instant digital payment systems like FedNow could reduce the need for digital currency circulation. In this case, the benefits of digital currency circulation may be minimized after FedNow launches.