As the current administration and Congress grapple with how to regulate crypto it is still the case that 55% of investors trust the current banking system over digital currency. Another way to look at this situation is that in the short time that cryptos have existed, a full 45% of investors have trust in them as an asset class. This is great news for Bitcoin and other cryptocurrencies and points to the lack of trust in our traditional financial system.
On the flip side, 71% of all investors believe that investing in crypto is very risky.
Last week, the Biden Administration recommended that the Securities and Exchange Commission and the Commodities Futures Trading Commission take an “aggressive look in combating crypto-crimes”, but offered no specific framework and stressed a message of regulation by enforcement vs. new legislation.
The alphabet soup of regulators keeps growing as an agency called the Financial Literacy Education Commission will lead efforts in educating investors on cryptos – no specifics on how this will be accomplished were given.
More than 50% of the 2,000 respondents to a survey conducted by the Independent Community of Bankers of America, thought that a U.S. Central Bank digital currency (CBDC) would reduce their personal financial privacy and would be another breach of their personal financial transactions.
While all of this concern on the part of the Biden Administration regarding cryptos ensues, billions of U.S. dollars are being laundered and used for millions of illicit transactions every day. Obviously, the largest financial institutions are against crypto unless they can control it, but that is the essence of the blockchain and cryptos – a decentralized currency that is worldwide and peer-to-peer transactionally.
In reality, the U.S. was offered, on a silver platter, a means of maintaining the dollar reserve status via Bitcoin. All Bitcoin transactions would have to eventually settle through the dollar thus ensuring the dollar’s preeminence as the world’s reserve currency. It now appears this Administration, the Fed, and big finance are now attempting to kill the golden egg goose.