White House - The Biden Administration thinks Economy is disturbed due to Crypto

[Flexystar]

This news and related claims were extracted from the Economic Report of the President and it laid down the foundation of a "disturbed ecosystem" due to the use of digital assets. This is what the Biden administration thinks.

So this is a report which is made by the Council of Economic Advisers which has written what are the priorities and thoughts about the economy and digital assets. While Biden was not really positive about the entire scenario, here are some key points they mentioned about the crypto environment:

- Report outlays use case of crypto assets as an investment vehicle and payment tool for future payments.
- Crypto assets can help in improving the intellectual property and financial causes
- Crypto is a valuable digital asset which is focusing on the infra of the payment system from different angles and much more!

The Problem?

Biden Administration said, crypto has shown none of the characteristics mentioned above and it never fulfilled any of the goals like that. They straight away went from positive talks about the crypto assets all the way down to what happened last year. Crypto is the worst asset and environment and he referred to the events such as: Collapse of Terra, BitConnect, and FTX

Then he grabbed all the attention to a newer version of the payment system named "FedNow" which he thinks can be the future of America. This would be a real-time payment system that will surpass the expectation in the financial system.

However, his thoughts about the crypto and it's regulations remains the same and strictest as ever before.

The Biden administration took aim at cryptocurrencies in a new report arguing that many aspects of the digital asset ecosystem are creating issues for consumers, the financial system and the environment.
The Economic Report of the President, published on Monday, is an annual publication by the Council of Economic Advisers aimed at explaining the president's economic priorities and policies. The March 2023 issue included an entire chapter on digital assets and "economic principles."
Monday's report comes amid growing industry concern that federal regulators are looking to de-bank crypto companies, though state and federal regulators have thus far denied these claims. Still, the tone of the report is unlikely to assuage these concerns.


Matthew Homer, a former deputy superintendent with the New York Department of Financial Services, told CoinDesk the report was a "damning indictment of the space that makes [the administration's] policy position crystal clear."
"The amount of attention given to digital assets is substantial, especially when viewed in comparison to other areas of financial services that have arguably been far more detrimental over the past few weeks. The assessment is striking in its definitive tone and broad brush strokes," he said.
The report looked at a number of claims and stated goals from the crypto industry, ranging from cryptocurrencies' role as investment vehicles and payment tools to its potential use in payment infrastructure. The report said that "many [cryptocurrencies] do not have a fundamental value" and noted other issues with the sector.
"It has been argued that crypto assets may provide other benefits, such as improving payment systems, increasing financial inclusion and creating mechanisms for the distribution of intellectual property and financial value that bypass intermediaries that extract value from both the provider and recipient. Looking under the hood at these arguments, however, shows a more complicated picture. So far, crypto assets have brought none of these benefits," the report said.
Various disasters in the crypto sector, including last year's collapse of Terra, BitConnect and FTX, were cited as examples of how everyday Americans were harmed.
Other examples pointed to more subtle frauds, such as Long Island Iced Tea changing its name to Long Blockchain to ride a stock price wave despite not having anything to do with blockchain at the time

Full Article read: White House Takes Aim at Crypto in Scathing Economic Report

[avikz]

That's utter nonsense! I never thought US government will blame crypto companies fall as a background reason for banking fails. Anyone with a little knowledge of banking will say the banking crisis has happened due to simple failure to maintain banking 101 rules.

Biden government is desperately trying to find a scapegoat it seems! It certainly raises an alarm for the crypto companies operating from US.

[uneng]

I'm glad we don't need Biden Administration's approval or endorsement in order to adopt cryptocurrencies for ourselves. People shouldn't expect a different stance from politicians, because they will go always against everything which gives autonomy and freedom to the common citizen they try to keep under the control of the state's forces. I understand the concern regards scam schemes being operated making use of cryptocurrencies, though.

That is a real alert crypto enthusiasts should be aware about, so they can avoid losing money for such thieves futurely.

[bittraffic]

This is sure to make FEDNOW look good for the regular user while crypto is also bad. All leads going to CBDC including the collapse of banks.
This is a marketing article for that Fednow, I heard they are going to fully launch it this July. They really have to assassinate crypto for this CBDC or people will not use it.

Long Island Iced Tea changed its name to Long Blockchain for price pump is funny, I hope it worked though.

[Smartprofit]

This is sure to make FEDNOW look good for the regular user while crypto is also bad. All leads going to CBDC including the collapse of banks.
This is a marketing article for that Fednow, I heard they are going to fully launch it this July. They really have to assassinate crypto for this CBDC or people will not use it.

Long Island Iced Tea changed its name to Long Blockchain for price pump is funny, I hope it worked though.

As I understand it, the FedNow financial system is a CBDC?  The so-called digital dollar? 

Democrats seem to be avoiding calling this new financial system CBDC because the name has already discredited itself. 

Everyone sees how it is used in China, how it is combined with the social rating system and other elements of the digital concentration camp. 

I still hope that the US elections will come soon and the Republicans will actively oppose the FedNow financial system!  The introduction of a digital dollar in the US could indeed lead to active repression against Bitcoin.

[Gyfts]

The Biden White House released an earlier report on crypto and they've laid out their positions clearly. They're going to follow the lead of higher regulations and curtailment of the crypto industry, perhaps introduction of CBDC's and raising taxes on crypto users. Wouldn't surprise me in the slightest if they start implementing wealth taxes for investors who sit on crypto in a desperate attempt to raise tax revenue and/or incentivize institutional investors to stay away from crypto.

Seeing as the ineptitude of the federal reserve has reached a boiling point, coincidentally the Biden administration seems more adamant than ever to regulate crypto.

And don't forget, when FTX crashed, they wasted no time to capitalize and used FTX to layout regulatory framework through executive orders: https://www.whitehouse.gov/briefing-room/statements-releases/2022/09/16/fact-sheet-white-house-releases-first-ever-comprehensive-framework-for-responsible-development-of-digital-assets/

These "fact sheets" are nothing but propaganda.

[davis196]

This is the same anti-Bitcoin/crypto propaganda every anti-Bitcoiner keeps repeating.
"Bitcoin/crypto is bad, because {insert random centralized crypto company scam here} stole people's money." Only ignorant people with low IQ would believe in this nonsense. It's like saying the US dollar is bad, because a criminal stole the money you where hiding under your bed.
I've never heard anything about this FedNow thing. Is this a new payment gateway or something?
The left wing progressive liberals/democrats never put the blame on themselves and their incompetence. They will always point fingers and blame someone else.

[franky1]

imagine if instead of bitcoin being measured against dollar. it was measured against "minimum wage units"

where by 1btc was 2300 units

meaning with UK min wage it was ~£23k  (~£10 min wage)
meaning with US min wage it was ~$34k (~$15 min wage)
meaning with africa min wage it was ~$690 (~$0.30 min wage)

imagine the disturbance on the forex market of americans buying african currency to then deposit into african exchanges to buy bitcoin for 50x cheaper. to sell on american exchanges.
(repeat repeat repeat)

the selling of USD in favour of buying african currency/handing currency to africans, would cause the forex rates to change. thus changing the economic powers of america:africa to shift

it would cause forex DISRUPTION far bigger then what biden would understand as "disturbance"

if biden really wants to see what real disruption could be caused to fiat economy. he has not seen even a pinch of salts worth of whats possible if we as a crypto community would really try

[hyudien]

The Problem?

Biden Administration said, crypto has shown none of the characteristics mentioned above and it never fulfilled any of the goals like that. They straight away went from positive talks about the crypto assets all the way down to what happened last year. Crypto is the worst asset and environment and he referred to the events such as: Collapse of Terra, BitConnect, and FTX

Then he grabbed all the attention to a newer version of the payment system named "FedNow" which he thinks can be the future of America. This would be a real-time payment system that will surpass the expectation in the financial system.

Actually there is no problem, but to be more precise, the community has found a solution to be free from government tax oversight. And it is very natural for a state administrator to make a report that distorts the facts. If you rely solely on FTX, Terra, and the like then it's no longer an individual case. Communities that already use crypto are helped and are freer to protect their assets from third party interference.

[woez]

You seem interested in the latest White House economic reports on cryptocurrencies. A closer look at this highlights several issues with the digital asset industry, including concerns about cybersecurity, money laundering and tax evasion. It also calls for increased industry regulation. What this means is that the report takes a critical view of cryptocurrencies and points out that they can pose significant risks to the wider economy.

If I'm not mistaken This includes is an annual report called The "Economic Report of the President" which is published by the Council of Economic Advisors which outlines the economic priorities and policies of a president and is an important resource for understanding the current state of the US economy and the government's priorities for the coming year .

[Fesatmas]

That's utter nonsense! I never thought US government will blame crypto companies fall as a background reason for banking fails. Anyone with a little knowledge of banking will say the banking crisis has happened due to simple failure to maintain banking 101 rules.

Biden government is desperately trying to find a scapegoat it seems! It certainly raises an alarm for the crypto companies operating from US.

Yes, they are talking nonsense, they are really looking for scapegoats for all the failures they have made, the reason is, if I'm not mistaken, there was a bank crisis in 2008/2009 and that was before the existence of crypto, which is an illogical reason in my opinion.
The US is currently being choked up by the system they created themselves and for me it is a show for the world and people should be aware of this that it seems that monetary policy and the banking system are on the verge of collapse. I am very interested in this and whether it is possible that the banking system will be replaced with a new financial system for a better future, we will start writing about it today and how it will become history.

[Synchronice]

Then he grabbed all the attention to a newer version of the payment system named "FedNow" which he thinks can be the future of America. This would be a real-time payment system that will surpass the expectation in the financial system.

I'll quote a very funny comment from Reddit:

Fednow is such a lame name. I think they should call it:

Federal Transaction Token (FTT) and the exchange should be Federal Trade Exchange (FTX)

"It has been argued that crypto assets may provide other benefits, such as improving payment systems, increasing financial inclusion and creating mechanisms for the distribution of intellectual property and financial value that bypass intermediaries that extract value from both the provider and recipient. Looking under the hood at these arguments, however, shows a more complicated picture. So far, crypto assets have brought none of these benefits," the report said.

Crypto assets provide a lot of financial benefits, including low fees, better privacy, decentralization, control over your funds, etc. The problem is that FED wants a payment system where visually it looks like it offers financial benefits but deep inside its roots must be connected to fed and must be very centralized in their favor, must be under their control.
No one has ever become rich by holding dollars or having deposits in banks while Bitcoin changed a fate of a lot of people in a very positive manner. Not only that, this currency prioritizes individuals over centralized controllers.

[Alpha Marine]

That's utter nonsense! I never thought US government will blame crypto companies fall as a background reason for banking fails. Anyone with a little knowledge of banking will say the banking crisis has happened due to simple failure to maintain banking 101 rules.

Biden government is desperately trying to find a scapegoat it seems! It certainly raises an alarm for the crypto companies operating from US.

It's exactly how they operate. They always look for a scapegoat. A lot of these banks have been doing shitty business for decades. Some became careless, and some became greedy but somehow crypto is to blame for the crisis in the banking sector. To some of these guys, every bad thing is caused by crypto. They'll soon blame the next earthquake on crypto.