[ad_1]
British economic and financial historian Niall Ferguson said the United States must find its own way in embracing cryptocurrencies, rather than “building [its] own versions of Chinese electronic payment systems. “
In a Bloomberg opinion piece, Ferguson said on Sunday that the current pandemic has generally been good for cryptocurrency adoption, accelerating a “currency revolution” around the world. However, the historian noted that China has “made rapid progress” in rolling out its digital yuan and increasing use of mobile payments. Apps like Alipay and WeChat Pay are said to process around $ 40 trillion in transactions per year.
The historian believes that these measures from China serve as a model for other countries developing cross-border payment systems and remittances. However, he advised the United States against doing so:
“Even governments that resist Chinese financial penetration, like India, are essentially building their own versions of Chinese electronic payment systems,” Ferguson said. “Rather than seeking to create a Chinese-style digital dollar, the nascent Joe Biden administration should recognize the benefits of integrating Bitcoin into the US financial system.”
Ferguson added that US authorities have already put in place methods to manage law enforcement around Bitcoin (BTC). The Internal Revenue Service now requires individuals to report their crypto holdings on their returns and can attack Coinbase users who fail to comply with tax and reporting requirements. In addition, the Federal Bureau of Investigation has looked into cases of money laundering using cryptography.
“The point is simply that the financial data of law-abiding individuals is better protected by Bitcoin than by Alipay,” the historian said.
The president-elect’s personal views on crypto, central bank digital currencies and Bitcoin are not well known, but there are indications that members of his administration could potentially help guide crypto through a more regulatory framework. friendly in the United States. For example, Biden could ask former Commodity Futures Trading Commission chairman Gary Gensler to be his deputy treasury secretary.
[ad_2]
Source link