The White House attacks digital assets in a new report, arguing that cryptocurrency is not worth much

According to reports, a new report from the White House has criticized digital assets for failing to fulfill their initial commitments and posing risks to consumers and the entire US financial system. The report points out that digital assets have been touted as distribution tools for intellectual property and financial value, better payment mechanisms, ways to increase financial inclusion, and ways to cut off financial intermediaries, “So far, crypto assets have not brought any benefits. So far, crypto assets do not appear to provide any fundamental value for investment, nor can they serve as an effective substitute for fiat money, improve financial inclusion, or improve payment efficiency. Instead, their innovation is primarily to create artificial scarcity to support the price of crypto assets – many of which have no fundamental value, which has triggered regulatory efforts to protect consumers “Investors and other financial systems are protected from the effects of panic, collapse, and fraud associated with crypto assets.”

Interpretation of this information:

The White House has published a report that criticizes digital assets, stating that they have failed to deliver on their promises and pose risks to consumers and the US financial system as a whole. The report highlights that digital assets have been marketed as tools for distributing intellectual property and financial value, improving payment mechanisms, increasing financial inclusion, and cutting out financial intermediaries. However, the report argues that so far, digital assets have not brought any benefits and do not provide fundamental value for investment, nor can they be an effective substitute for fiat money, improve financial inclusion or payment efficiency. Instead, their innovation lies primarily in creating artificial scarcity to support the price of crypto assets that have no fundamental value, leading to regulatory efforts to protect investors and the broader financial system from the risks of panic, collapse, and fraud associated with crypto assets. The report reflects the growing concerns among policymakers and regulators about the risks posed by digital assets to financial stability and investor protection.