{"id":564693,"date":"2021-06-15T15:22:25","date_gmt":"2021-06-15T19:22:25","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=564693"},"modified":"2021-06-15T15:22:29","modified_gmt":"2021-06-15T19:22:29","slug":"buy-ban-or-copy-how-governments-are-responding-to-the-cryptocurrency-revolution","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/buy-ban-or-copy-how-governments-are-responding-to-the-cryptocurrency-revolution\/","title":{"rendered":"Buy, Ban, Or Copy? How Governments Are Responding To The Cryptocurrency Revolution"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fbuy-ban-or-copy-how-governments-are-responding-to-the-cryptocurrency-revolution%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=564693&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/06\/GettyImages-1250588887-1200x800-1.jpg\" class=\"ff-og-image-inserted\"  style=\"display:none\"><\/div>\n<p><span>The global economy is facing an unprecedented currency disruption.<\/span><\/p>\n<p><span>For decades, fiat currencies \u2014 based solely on the credit of a national government \u2014 have been the global norm. Since the United States stopped tying dollars to the value of gold in 1971, for instance, the currency has no value apart from its federal endorsement.<\/span><\/p>\n<p><span>More recently, cryptocurrencies \u2014 decentralized, virtual currencies kept anonymous and protected from counterfeiting via encryption \u2014 have rapidly gained prominence. Countless reputable institutions \u2014 from <\/span><a href=\"https:\/\/www.cnbc.com\/2021\/02\/08\/tesla-buys-1point5-billion-in-bitcoin.html\"><span>Tesla<\/span><\/a><span> and <\/span><a href=\"https:\/\/www.cnbc.com\/2021\/03\/17\/bitcoin-morgan-stanley-is-the-first-big-us-bank-to-offer-wealthy-clients-access-to-bitcoin-funds.html\"><span>Morgan Stanley<\/span><\/a><span> to <\/span><a href=\"https:\/\/www.thecrimson.com\/article\/2021\/1\/27\/hmc-buying-bitcoin\/#:~:text=Harvard%20Management%20Company%20Has%20Invested%20in%20Bitcoin%20Since%202019%2C%20per%20Report,-Harvard%20Management%20Company&#038;text=In%20April%202019%2C%20Harvard%2Daffiliated,the%20Securities%20and%20Exchange%20Commission.\"><span>Harvard University<\/span><\/a><span> and <\/span><a href=\"https:\/\/www.nasdaq.com\/articles\/paypal-accepts-bitcoin-for-merchant-payment-2021-04-05\"><span>PayPal<\/span><\/a><span> \u2014 are now accepting, buying, and encouraging the use of bitcoin and other digital money.<\/span><\/p>\n<p><span>Proponents of cryptocurrencies point out their value as a hedge against hyperinflation. Citing central banks\u2019 increasingly dovish attitudes toward price levels, Noelle Acheson \u2014 Director of Research for cryptocurrency news outlet Coindesk \u2014 <\/span><a href=\"https:\/\/www.coindesk.com\/bitcoin-hedge-inflation-crazy\"><span>argues<\/span><\/a><span> that bitcoin not only protects against rising inflation, but also \u201call the other negative consequences that usually accompany it.\u201d\u00a0<\/span><\/p>\n<p><span>Beyond skyrocketing price levels, Acheson sees bitcoin as a \u201chedge for unstable governments that close bank accounts, police states that want to seize private wealth, broken payments rails due to corrupted systems or outside cyber attack threats, paranoid leaders that want to disenfranchise opponents, export-protecting devaluations that trigger more inflation.\u201d In a word, bitcoin protects against \u201ccrazy.\u201d<\/span><\/p>\n<p><span>Policymakers across the globe are responding to the rise of cryptocurrency in a variety of ways.<\/span><\/p>\n<p><span>At the most pragmatic level, some are recognizing bitcoin as an investment opportunity.\u00a0<\/span><\/p>\n<p><span>Temasek Holdings \u2014 a sovereign wealth fund of Singapore that manages $306 billion in assets \u2014 has been <\/span><a href=\"https:\/\/blockworks.co\/sovereign-wealth-funds-are-looking-to-buy-bitcoin\/\"><span>buying<\/span><\/a><span> bitcoin since 2018. GIC \u2014 Singapore\u2019s other sovereign wealth fund, which manages $488 billion \u2014 <\/span><a href=\"https:\/\/www.theblockcrypto.com\/linked\/108159\/singapore-sovereign-wealth-fund-70-million-osl\"><span>invested<\/span><\/a><span> $70 million into the parent company of crypto exchange OSL. Likewise, Norway\u2019s Government Pension Fund Global \u2014 which controls $1.3 trillion in assets \u2014 indirectly invests in bitcoin through one of its holdings.<\/span><\/p>\n<p><span>El Salvador is the only country to fully accept bitcoin as legal tender.\u00a0<\/span><\/p>\n<p><span>The small Central American nation \u2014 which previously used only the dollar as its official currency \u2014 passed a <\/span><a href=\"https:\/\/www.dailywire.com\/news\/el-salvador-seeks-to-adopt-bitcoin-as-legal-tender\"><span>bill<\/span><\/a><span> stating that \u201ccentral banks are increasingly taking actions that may cause harm to the economic stability of El Salvador.\u201d The legislation explains that the risk posed by central banks renders it \u201cnecessary to authorize the circulation of a digital currency with a supply that cannot be controlled by any central bank and is only altered in accord with objective and calculable criteria.\u201d<\/span><\/p>\n<p><span>In partnership with Salvadoran President Nayib Bukele, Jack Mallers \u2014 CEO of bitcoin wallet company Zap \u2014 touted the fact that bitcoin can freely travel across international borders and boost inclusivity for disadvantaged populations: \u201cOver 70% of the active population in El Salvador doesn\u2019t have a bank account. They\u2019re not in the financial system. They had a huge problem of financial inclusivity and providing their citizens with basic human freedom.\u201d<\/span><\/p>\n<p><span>Indeed, bitcoin permits migrant Salvadorans working abroad to send their earnings home without losing a sizable portion to international transfer fees. In the words of Mallers, these fees can amount to \u201cf*cking half\u201d of a worker\u2019s paycheck.<\/span><\/p>\n<p><span>Other countries, however, are attempting to ban or heavily discourage cryptocurrency.\u00a0<\/span><\/p>\n<p><span>For one, China <\/span><a href=\"https:\/\/finance.yahoo.com\/news\/china-reiterates-crypto-bans-2013-151414214.html\"><span>barred<\/span><\/a><span> financial institutions from facilitating cryptocurrency transactions and banned initial coin offerings (ICOs) \u2014 the introduction of new cryptocurrencies as a fundraising mechanism for companies.\u00a0<\/span><\/p>\n<p><span>Citing the Chinese government\u2019s desire to <\/span><a href=\"https:\/\/www.wsj.com\/articles\/china-creates-its-own-digital-currency-a-first-for-major-economy-11617634118\"><span>ensure<\/span><\/a><span> its \u201ccurrency sovereignty\u201d and \u201clegal currency status,\u201d the People\u2019s Bank of China instead began <\/span><a href=\"https:\/\/www.cnbc.com\/2021\/03\/05\/chinas-digital-yuan-what-is-it-and-how-does-it-work.html\"><span>issuing<\/span><\/a><span> digital yuan earlier this year. Although it lacks the decentralization of true cryptocurrency, the digital yuan offers \u201ccontrollable anonymity\u201d by offering citizens private transactions \u2014 albeit with the People\u2019s Bank of China as the \u201csole third party.\u201d\u00a0<\/span><\/p>\n<p><span>Nations such as <\/span><a href=\"https:\/\/www.coindesk.com\/ecuador-bans-bitcoin-legislative-vote\"><span>Ecuador<\/span><\/a><span>, <\/span><a href=\"https:\/\/www.reuters.com\/article\/thailand-economy-cenbank\/thai-central-bank-to-test-retail-baht-digital-currency-next-year-idUSL4N2LV0WA\"><span>Thailand<\/span><\/a><span>, and <\/span><a href=\"https:\/\/www.arabianbusiness.com\/banking-finance\/455283-uae-saudi-arabia-cenbanks-satisfied-with-results-of-common-digital-currency-plan#:~:text=The%20central%20banks%20of%20the,for%20a%20common%20digital%20currency.&#038;text=Plans%20to%20develop%20the%20Aber,Blockchain%20and%20distributed%20ledgers%20technologies.\"><span>Saudi Arabia<\/span><\/a><span> have followed suit in discouraging the use of cryptocurrency while creating their own \u201ccentral bank digital currencies\u201d (CBDCs).<\/span><\/p>\n<p><span>Meanwhile, the Federal Bank of the United States plans to release a <\/span><a href=\"https:\/\/www.cnbc.com\/2021\/05\/20\/the-fed-this-summer-will-take-another-step-ahead-in-developing-a-digital-currency.html\"><span>report<\/span><\/a><span> this summer about the possibility of developing its own CBDC.<\/span><\/p>\n<p><span>\u201cThe effective functioning of our economy requires that people have faith and confidence not only in the dollar, but also in the payment networks, banks, and other payment service providers that allow money to flow on a daily basis,\u201d Fed Chair Jerome Powell said in a recent video. \u201cOur focus is on ensuring a safe and efficient payment system that provides broad benefits to American households and businesses while also embracing innovation.\u201d<\/span><\/p>\n<p><span>Accordingly, Powell stressed that a digital currency would only be adopted in the United States after a \u201cthoughtful and deliberative process.\u201d Nevertheless, Wall Street is <\/span><a href=\"https:\/\/www.cnbc.com\/2021\/04\/19\/central-bank-digital-currency-is-the-next-major-financial-disruptor.html\"><span>preparing<\/span><\/a><span> for the embrace of digital currency as inevitable; one Morgan Stanley economist remarked that \u201cthe more widely digital currencies are accepted, the more opportunity for innovation and the greater the scope for disruption to the financial system.\u201d<\/span><\/p>\n<p><span>The success of governments\u2019 attempts to maintain monetary supremacy over cryptocurrency is yet to be determined. On one hand, most CBDCs mimic cryptocurrencies through their use of blockchain technology, with the added benefits of stability and widespread acceptance. On the other hand, users of CBDCs would potentially lose the benefits of decentralization and anonymity offered by bitcoin.<\/span><\/p>\n<p><span>As central banks venture into uncharted waters, time alone will determine citizens\u2019 response to the digital currency revolution.<\/span><\/p>\n<p class=\"p1\"><i>The views expressed in this opinion piece are the author\u2019s own and do not necessarily represent those of The Daily Wire.<\/i><\/p>\n<p class=\"p1\"><i>The Daily Wire is one of America\u2019s fastest-growing conservative media companies and counter-cultural outlets for news, opinion, and entertainment. Get inside access to The Daily Wire by becoming a\u00a0<\/i><a href=\"https:\/\/www.dailywire.com\/subscribe\"><span class=\"s1\"><i>member<\/i><\/span><\/a><i>.<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The global economy is facing an unprecedented currency disruption.For decades, fiat currencies \u2014 based solely on the credit of a national government \u2014 have been the global norm. Since the &#8230;<\/p>\n","protected":false},"author":1,"featured_media":2280357,"comment_status":"close","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/06\/GettyImages-1250588887-1200x800-1.jpg","fifu_image_alt":"Buy, Ban, Or Copy? How Governments Are Responding To The Cryptocurrency Revolution","footnotes":""},"categories":[],"tags":[],"class_list":["post-564693","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"fifu_image_url":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/06\/GettyImages-1250588887-1200x800-1.jpg","fifu_image_alt":"Buy, Ban, Or Copy? 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