Is the United States Trying to Kill Cryptocurrencies?

03/28/2023 15:38 • Tech Ticker • 127 views

On March 28th, Stefan Rust, CEO of Trufusion, an inflation data aggregator, said that the United States seemed intent on “killing” cryptocurrencies. According to him, it is mainly cryptocurrencies that pose a threat to the dominant position of the United States on the global stage, challenging the hegemony of the United States dollar, which is the core reason for pushing the United States to combat cryptocurrencies. FTX, Celcius, or other cryptocurrency incidents are just a cover.

Truflation CEO: Cryptocurrency threatens the hegemony of the US dollar, causing a strike by the US government

Cryptocurrencies have been subject to heated debates among financial institutions and governments. While some countries have embraced them and even developed their own central bank digital currencies, others have been cautious, if not hostile. In March 2021, Stefan Rust, CEO of Trufusion, an inflation data aggregator, made serious accusations against the United States, claiming it was trying to “kill” cryptocurrencies. But what is behind this hostility, and what are the implications for the future of digital assets?

The Dominance of the US Dollar

According to Rust, the United States’ main motivation behind its anti-crypto stance is the dominance of the US dollar in the global financial system. For decades, the dollar has been the world’s reserve currency, giving the United States immense economic and political power. By controlling the supply and demand of dollars, the US government can influence global trade, sanctions, and pricing.
However, the rise of cryptocurrencies poses a significant threat to this hegemony. Cryptocurrencies allow for peer-to-peer transactions without intermediaries, preventing governments from tracking or regulating them. Moreover, cryptocurrencies can also offer an attractive alternative to traditional currencies in countries with unstable economies or currencies. Thus, many governments, including the United States, fear that the increase in the adoption of cryptocurrencies could lead to a destabilization of the current financial order.

Pushing Back Against Cryptocurrencies

How does the United States plan to stop the rise of cryptocurrencies? According to Rust, the crackdown on cryptocurrencies is part of a larger scheme to protect the US dollar’s dominance. Rust argues that many of the incidents that we have seen, such as the FTX, Celsius, or other cryptocurrency incidents, are merely a facade for the United States’ real agenda.
The US government has already taken several measures to curb cryptocurrencies’ use, such as the FinCEN’s proposed regulations on digital asset transactions exceeding $10,000. Additionally, in January, the Office of the Comptroller of the Currency (OCC) proposed a rule allowing banks to use blockchains and stablecoins for payment activities. Still, they emphasized that these institutions must continue to comply with anti-money laundering and counter-terrorist financing regulations. Such actions indicate that the US government is taking a strong stance against cryptocurrencies, which could have far-reaching consequences.

The Future of Cryptocurrencies

So, what does this mean for the future of cryptocurrencies? While the United States’ anti-crypto measures may slow down adoption and innovation, they are unlikely to kill cryptocurrencies altogether. Digital assets have already proven their resilience and adaptability, surviving numerous challenges and regulatory changes. Moreover, the rise of decentralized finance (DeFi) and non-fungible tokens (NFTs) has opened up new frontiers for blockchain technology, which may offset any setbacks from government regulations.
In conclusion, the United States’ hostility towards cryptocurrencies can be traced back to its fear of losing its dominant position in the global financial system. While the US government’s attempts to curb cryptocurrencies’ use may deter some investors and firms, the long-term future of digital assets remains promising. As blockchain technology continues to evolve, it is likely to disrupt traditional finance and offer new opportunities for investing and trading.

FAQs:

– Q: Can cryptocurrencies replace traditional currencies?
– A: While cryptocurrencies may offer a viable alternative to traditional currencies in some cases, they are unlikely to replace them altogether, at least not in the short term.
– Q: Are cryptocurrencies safe from government regulations?
– A: No, governments around the world are increasingly taking steps to regulate cryptocurrencies, which could affect their adoption and value.
– Q: Should I invest in cryptocurrencies?
– A: Cryptocurrencies are highly volatile and risky assets, and investing in them requires careful consideration of the risks and potentials. It is advisable to seek professional advice before investing.
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