Following Trump’s announcement on crypto-currencies, Bitcoin and Libra. It is now the american Treasury Secretary, Steven Mnuchin to communicate on the matter. An announcement that is not good news for the crypto community.
Currently serving in Trump’s administration, Mnuchin held an a press conference from White House to speak about the alarming threat that comes with the acceptance of virtual currencies.
“This is indeed a national security issue,” Sec. Mnuchin said on the need for more regulation in the crypto space. “We will not allow digital asset service providers to operate in the shadows.” https://t.co/03CEzStDZE pic.twitter.com/zykiOLkm96
— Bloomberg Crypto (@crypto) 15 juillet 2019
The US administration is determined on not letting Bitcoin compete against the US dollar or even leave any room for it to expand economically or industrially. No virtual currencies and no services related.
The reasons, according to him, crypto-currencies are too vulnerable when it comes to criminality, they could be used for money laundering and financing terrorist organizations.
Steven Mnuchin join a consensus among some politicians, they agree Bitcoin could be a threat to the government objective which is to stabilize the financial market. To support this objective the USA could not afford to accept any currency that undervalues the US dollar.
According to Mnuchin, the huge $40 billion USD Bitcoin represents is speculative and that a majority of it is driven by emotions, therefore unsustainable. Needless to mention that when something happens on the market, like a loss of value, peoples will lose money and have no-one to turn to.
Conforming to regulations
Famous for being unregulated, crypto-currencies could jeopardize the market and therefore will have to conform to the US banking regulations. Same thing for Facebook that will have to comply to the US central bank rules, like any other currency.
To meet these goals Bitcoin experts and Libra’s will have to deal with a highly complex regulation system. Considered as an impossible task by the secretary himself. The lack of essential expertise on that matter from crypto experts is what seems to make the digital currencies doomed to fail. It seems that even with Zuckerberg’s immense capacity to answer these kind of problems, it could be impossible to find a way to abide by the terms and conditions.
The Secretary reasserted that Bitcoin’s imminent death is only a matter of time as the US government was going to regulate the sector and that Bitcoin would probably not be able to meet the required stringent regulation guidelines.