U.S. Deputy Treasury Secretary Believes Bitcoin Won’t Dominate The Dollar• November 17, 2021 8:25 pm • Comments
The U.S. Treasury seems to have a bullish stance on The U.S. Dollar.
Wally Adeyemo, The U.S. Deputy Treasury Secretary believes that Bitcoin will not be more dominant than The U.S. Dollar, and it isn’t hard to see where he is coming from.
Currently BTC is valued using the dollar as the measuring stick. Its value is based on The U.S. Dollar, but we should examine that relationship more closely before coming to any conclusions.
Those familiar with Gresham’s law understand that more desirable or “better” money is driven out of markets by bad money, as people are more keen on hanging onto the currency they believe to hold more value.
Point in case: we all tend to HODL our crypto, but Dollars? We almost can’t wait to get rid of them.
Whether it be to invest into more crypto, or to make that purchase at the grocery store, everyone currently prefers to pay in U.S. Dollars, why? Because it is seen as less valuable than the digital currency we all hoard.
This leads me to my next question, have cryptocurrencies already become dominant over The Dollar in terms of investment and store of value?
Adeymo may be onto something with his analysis in that people purchasing consumer goods, and paying for the necessities of life currently prefer to use U.S. Dollars, and that may always be the case, but does this not indicate that crypto is already king?
Here’s more on what he had to say:
Cryptocurrencies present both opportunities and challenges but they are unable to replace the USD, said Wally Adeyemo.https://t.co/ToXGSNowN5
— CryptoPotato Official (@Crypto_Potato) November 17, 2021
Adeyemo on crypto & sanctions: cryptocurrencies makes it harder for sanctions to be effective, but as long as companies in 🇷🇺&🇨🇳do a great deal of business around the world, there will still be scope for our sanctions to have an impact on their economies.https://t.co/ZolmA7lgJt
— Dr Maria Shagina (@maria_shagina) November 17, 2021
CNBC shared Adeyemo’s perspective with us:
“Ultimately the thing that is going to drive the dollar’s position in the world are the decisions we make in America about investing in our economy. The reason that people are involved in the dollar-based economy … is because they want to invest in America,” he continued.
Adeymo fails to see that the biggest inflationary increase in decades recently occurred, and questions over America’s position on the foreign stage loom.
People want to invest in America, but again these are uncertain times, and the day may soon come where foreigners no longer wish to invest in America.
Janet Yellen blames the recent inflation on Covid-19, rather than admitting that The Fed’s policies are unsafe and unsound, how long can an increasingly devalued U.S. Dollar continue to dominate in this type of environment?
“We’re going to see inflation of a kind we haven’t seen in 30 years.” Despite the gloomy forecasts, the White House doesn’t believe these predictions and U.S. Treasury secretary Janet Yellen is blaming inflation on the Covid pandemic. https://t.co/Nj7LtIcSCo
— KATHERINE BITCOIN INVESTMENT 🎢🌉 (@btc12_) November 17, 2021
Treasury Department urges Congress to regulate cryptocurrencies like financial institutions
— CryptoElite (@CryptoEliteNews) November 16, 2021
Crypto Potato adds:
The 40-year-old Nigerian-American added that crypto’s biggest problem is its involvement in illicit money transactions in a way that “doesn’t touch the dollar and that we can’t see as easily.” To resolve this issue, the US government should collaborate with other nations and tighten the anti-money laundering rules, Adeyemo asserted.
It is worth noting, though, that many reports continue to indicate that employing cash is still the most used payment method in criminal operations such as drug trafficking, for example.
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