The new currency war is brewing –Former US President Donald Trump is sticking to his hostile stance on Bitcoin and cryptocurrencies. Indeed, the latter seem to have become the common enemy, a rare common ground between his Administration and that of his successor.
The Dollar First: a slogan that is still relevant
On August 31, Donald Trump spoke about Afghanistan, the hot topic of the moment, and the American economy in an interview on Fox Business. The former US president also took the opportunity to attack Bitcoin and cryptocurrencies yet again. When asked by the interviewer if he had acquired any, his response was a mix of acidic comments about them, alongside praise for the US dollar:
“I don’t. I like the US currency. The others are potentially a disaster waiting to happen. I think it hurts the US currency. We should be invested in our currency, but not in others that may be fake. Who knows what they are? It’s certainly something that people don’t know very well. I’m not a big fan of it.”
Trump previously expressed his hostility to cryptocurrencies in a July 2019 tweet while still in the White House. At the time, he blamed cryptocurrencies for their volatile nature and the lack of regulation that could facilitate their use in illegal activities. Trump hasn’t changed his tune over the years and is bringing out the “good old fashioned stuff” again in June 2021, declaring Bitcoin a scam and weakening the US dollar.
Bitcoin may be hurting the greenback, but the “America First” believer believes in an eternally dominant dollar, stating that:
“The U.S. dollar is stronger than ever and is by far the most dominant currency in the world, and always will be.”
From winter to winter for cryptocurrencies
In his final acts of governance, Trump sought to pass a bill, unsuccessfully due to time constraints, that sought to liftanonymity from cryptocurrency wallets. Joe Biden’s arrival in office, however, did not end the Yankee-style cryptocurrency winter. The Senate recently approved the <a href=”https://journalducoin.com/actualites/etats-united-states-bitcoin-cryptocurrencies-loi-infrastructure/” target=”_self” rel=”noopener”>”infrastructure bill” which deals a big blow, not only to the privacy of crypto transactions, but also to the toughening of their taxation.
The regulatory nightmare doesn’t end there. Indeed, Treasury Secretary Janet Yellen, who wants to regulate the sector in order to bring more clarity, to protect investors who should exercise according to precise rules, is far from carrying cryptocurrencies in her heart.
In this lingering crypto winter under Biden’s tenure, Bitcoin may not be the main target of authorities. Stablecoins seem to be getting much more attention from US authorities. The advance of Diem (ex-Libra) or Tether USDT, which has surpassed 60 billion in market capitalization, pose a serious threat to the dollar and possibly the future digital dollar.
The winter is dragging on and could get rougher for cryptocurrencies with a potential regulatory crackdown. Some players in the cryptosphere are preparing for this, such as Coinbase, which has been ahead of the curve, building up a cash reserve to weather the bad days.
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