The White House’s latest economic report has drawn ire from crypto assets executives. This is due to its chapter dedicated to casting doubts on digital assets.
Released on March 20, the President’s Economic Report marks the first time the White House has included a section on digital assets since it began issuing the annual economic policy report in 1950.
The report argues that digital assets don’t fulfill promised benefits: enhancing payment systems, financial inclusion, and value/IP transfer.
Cryptocurrencies cannot fulfill the requirements of sovereign money. Furthermore, their prices vary too greatly to serve as a reliable store of value or a means of payment.
The report supports stablecoins but deems cryptocurrencies too risky for fast payments. It is 35 pages long and includes a section on FedNow and CBDCs, discrediting the perceived appeal of digital assets.
U.S. Analysis Highlights Crypto FUD, Raising Market Fears
Fred Ehrsam from Paradigm Tweeted that 15% of the Economic Report was “crypto FUD.” Kristin Smith from Blockchain Association called the report “disappointing,” Some in the government are “allergic” to crypto.
The report asserts that limited platforms enable users to access blockchain-based apps, rendering them ungeneralized.
A new report says that a few miners do most of the mining in many cryptocurrencies. Acala Network’s growth officer, Dan Reecer, linked the news to Operation Chokepoint 2.0, which aimed to crack down on banks that supported cryptocurrencies.
Moreover, Reecer implies in the report that there is a digital dollar. He cites a section on the benefits of a U.S. central bank-controlled currency.
The latest annual economic policy report was published two weeks after the collapses of Silvergate, Silicon Valley, and Signature banks – all three of which had served aspects of the crypto industry.
However, Crypto executives have expressed irritation over the report, which they see as another attempt to stifle the crypto industry’s growth.
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