Why does the United States support Bitcoin (Why does the United States support virtual currency)?

Why does the United States support Bitcoin? Editor’s note: This article is from 8btc.com (ID: bitcoin8btc), authored by Kyle, and authorized for publication by Star Daily.

The United States is one of the first countries in the world to adopt Bitcoin as a payment currency. Since 2009, it has been leading the global economy. The depreciation of the US dollar has made people increasingly interested in digital assets and blockchain technology. However, due to regulatory uncertainty and lack of transparency, the price of cryptocurrencies has also skyrocketed. This fundamental change has led to an increased demand for issuing legal currencies in many countries, including Japan, Russia, and the United Kingdom, among other major regions, following this trend.

Why does the United States support Bitcoin?

Shortly after the US government announced the legalization of Bitcoin, its policy-making institutions began to consider further regulation in this field – despite the fact that central banks of some countries have been trying to ban Bitcoin transactions in recent months. These measures aim to prevent illegal activities and enable them to enter the market, while creating opportunities for those who do not wish to use or hold BTC.

Although US Treasury Secretary Janet Yellen previously stated, “We believe that a new approach is needed to control the financial system in order to achieve its goals,” she did not specify whether they would do so as she did not mention the actions they might take: “In fact, if I were to tell everyone now what Bitcoin can be used for?” Furthermore, there is also ongoing research on “how to ensure the security of Bitcoin”. According to research reports, currently, about 70%-90% of network attacks are caused by centralized systems, and therefore, most victims in the network are anonymous. So when someone tries to exploit this vulnerability, they would be affected by hackers, causing significant losses to their funds. “If Bitcoin is used as a medium of exchange or a store of value, its price could rise to trillions of dollars.” With the news of Joe Biden’s nomination as the US President, discussions about Bitcoin have once again become heated, and even a saying has emerged – “If you want to buy Bitcoin, you must hand it over to your friends,” and this former White House official seems to be very clear that Bitcoin is not a security. The source said, “Bitcoin is a highly volatile virtual commodity.” The US Treasury Secretary Steven Mnuchin recently explained that Bitcoin is highly speculative and does not circulate freely like any other currency. He also pointed out that “Bitcoin and other altcoins often compete with the stock market”. He said, “Bitcoin does attract some investors, but it is not suitable for retail investors as it does not have an investment function and is not suitable for the general public. On the contrary, it is closer to the stock market.”

As one expert said, the main concern of the US Treasury Department is to prevent money laundering.

Why does the United States support virtual currency?

Editor’s note: This article is from 8btc.com (ID: bitcoin8btc), authored by Kyle, and authorized for publication by Star Daily.

According to reports, the US Federal Trade Commission announced on Thursday that it will allow virtual currency exchanges to engage in cryptocurrency trading and transfer funds without a license, including providing digital asset services to customers. This is one of the largest regulatory provisions for the Bitcoin market so far and also indicates a rising investment in virtual currency. The US Treasury Department said, “We must make it clear that virtual currency is not a form of payment.” In addition, the Financial Crimes Enforcement Network (FinCEN) also pointed out the potential impact of “virtual token offerings.” “If someone claims that someone holds or owns a specific type of cryptographic token, then the agency may consider it as a security.” Will the US government support virtual tokens? This bill was originally enacted by the Bank Secrecy Act (BSA). On March 1, 2019, a proposal was introduced in the US House Subcommittee on Agriculture, Consumer Protection, and Enterprise Affairs – the “Commercial Ticket Sales and Broker Regulation Act,” and the Securities Act is considered the best practice for promoting the security token market. However, it is now a law and still has many issues to be resolved, addressing the issues facing Ethereum and other blockchain projects. While this amendment aims to regulate ICOs and some activities similar to ICOs, it also restricts some new use cases. For example: using smart contracts to process cryptocurrencies; allowing users to purchase stocks and sell the company tokens they hold. Due to the recent public call by US SEC Chairman Gary Gensler to develop rules regarding token issuance, US President Trump said earlier in a statement, “The United States should encourage innovation as it provides an easier way to understand and invest in digital assets.” He then added, “I think these measures are not only beneficial to investors, but also good news for those interested in participating in this emerging technology, especially in certain countries/regions.” However, as discussions about stablecoin regulations in the US Congress continue to expand, this topic seems to have become more urgent. According to data from Blockchain.com, as of early June, there is currently nearly 400 million dollars worth of cryptocurrency in circulation worldwide. Nevertheless, one key factor indicates that there is significant volatility in the prices of Bitcoin and other major cryptocurrencies. A 2020 report shows that there were over 1.1 billion transfers globally. Data from the same period last year showed that there were 73.6 million dollars flowing into a total of 516,000 addresses.