The cryptocurrency trading revolution exploded more than ten years ago and led to an almost unprecedented economic and financial earthquake. As a result, people are learning to change their approach to payment and investment systems, pushing up the price of many cryptocurrencies. Such a rapid change has not gone unnoticed on the boards of the world's major central banks. In fact, in an increasing number of countries, central banks are working on launching centralized digital currencies, known as CBDC. This…
Hillary Clinton thinks cryptos have the potential to destabilize countries and even threaten the U.S. dollar’s status as a reserve currency.
The former Democratic presidential candidate voiced her concerns over the issues that the governments worldwide are facing. Speaking at a panel at the Bloomberg New Economy Forum, she named a series of new challenges that are emerging. These, she said, include disinformation and the rise of AI – as well as cryptos.
“One more area that I hope nation-states start paying greater attention to is the rise of cryptocurrency – because what looks like an exciting and somewhat exotic effort to mine new coins to trade with them has the potential for undermining currencies, for undermining the role of the dollar as the reserve currency, for destabilizing nations, perhaps starting with small ones but going much larger,” the former Secretary of State said.
Former Secretary of State Hillary Clinton says the world must stand up to China and Russia, while Indian Foreign Minister Subrahmanyam Jaishankar blames Beijing for a “bad patch” in tieshttps://t.co/h0LZgBzufy
— Bloomberg Markets (@markets) November 19, 2021
Clinton also accused Russian President Vladimir Putin of employing many hackers and “those who deal in disinformation and cyberwarfare.”
Clinton’s comments come amid a debate in the U.S. on a bill on crypto tax reporting. The will would be a part of the new infrastructure law and would require traders to report any trade worth $10,000 or more in crypto to the IRS.
Crypto Traders Fire Back
The comments from the former Secretary of State drew angry reactions on social media by crypto traders. Many rejoiced in the idea that crypto could replace the dollar. Others pointed out that the Federal Reserve is destabilizing the dollar with all its money printing.
— Juan Hodl (@JuanGutiCA714) November 19, 2021
Still, others have stated that Clinton’s comments might be bullish for crypto due to her unpopularity. Clinton is not popular among crypto and retail trader circles, mainly to her perceived status as a part of the political establishment and the elite.
Crypto Not Likely To Replace USD – Any Time Soon
The idea of crypto replacing traditional currencies excites many traders. In November of 2021, El Salvador became the first country to adopt Bitcoin as legal tender.
However, crypto replacing the U.S. dollar any time soon is very unlikely, experts believe. The dollar has several advantages to many cryptos. It is relatively stable. While stablecoins also have a regular price, they don’t have the other edge of the U.S. Dollar – that of the U.S. government backing it.
Even if crypto comes close to threatening the dollar or any other currency, it will likely face strong resistance. China has already banned all crypto trading and mining. Many analysts say that its war on crypto is due to the release of its Digital Yuan. In addition, India is now debating new laws to regulate crypto. In particular, the new regulations could put in systems to make it harder for young people to access trading.
However, experts say that what could happen in the long run is uncertain. Cryptos have a crucial advantage over fiat currencies: central banks can’t create them out of thin air. That means that they could potentially be a better store of value in the future.