Those discussions between Biden officials and key players in the crypto world are quite interesting, but somehow, I can't help feeling a bit skeptical about their true intentions.
Scott Melker hit the nail on the head in that regard when he mentioned how governmental actions conflict with what is put out in public statements. It's like saying one thing and doing another when they veto bills that could have opened the big banks further to crypto.
It makes you wonder, are they open to innovation, or is it truly about wanting control?
James Heckman also had some good arguments. He showed how politicians' interests sometimes do not align with those of the general public, especially regarding currency.
They seem more concerned about pleasing big donors and influential sectors than really taking care of everyday people. And then, of course, there is inflation, in fact, just consider the surge in prices of things as basic as burgers and fuel. These are among the reasons why people are turning to alternatives like Bitcoin, not controlled by any government through printing more money.
Bitcoin represents a threat to the old financial system, by being decentralized and having a fixed supply. So Heckman was quite correct to say if more and more people started using Bitcoin instead of traditional means of money exchange, it would weaken the control of the government over the money.
Most likely, that's why there is such hustle about CBDCs and possible crackdowns on cryptocurrencies. It surely feels like some kind of tug-of-war between innovation and old powers.
Despite all of the discussions, I am still somewhat unconvinced that things will drastically head toward betterment. The government's record in taking up new technologies, especially the disruptive kind like crypto, has been somewhat less than stellar. There is huge uncertainty about how the regulations will pan out in times to come.
Will they stifle innovation or strike a balance that encourages it while safeguarding the consumer?
It's hard to say.
But I believe it is very important for anyone interested in crypto to at least stay informed and engaged. Pay attention to the rollout of regulations and their potential effects on the market. Follow the CBDC development as this may be game-altering for how we think about money.
But above all, remember this: