The Threat Cryptocurrencies Pose to the Dominant Position of the US Dollar

On March 28th, Stefan Rust, CEO of Trufusion, an inflation data aggregator, said that the United States seemed intent on “killing” cryptocurrencies. According to him, it is mainly cryptocurrencies that pose a threat to the dominant position of the United States on the global stage, challenging the hegemony of the United States dollar, which is the core reason for pushing the United States to combat cryptocurrencies. FTX, Celcius, or other cryptocurrency incidents are just a cover.

Truflation CEO: Cryptocurrency threatens the hegemony of the US dollar, causing a strike by the US government

Cryptocurrencies have been a hot topic for discussion for several years now. These digital assets have challenged traditional financial systems and provided an alternative to fiat currencies. While many view cryptocurrencies as a revolution in financial systems, some believe that they pose a threat to the dominant position of the US dollar. In this article, we explore the reasons behind this concern and the steps taken by the United States government to combat cryptocurrencies.

The Importance of the US Dollar

The United States dollar is the global reserve currency, and it has been since the end of World War II. The US dollar is used for international trade, and its stability is essential for the global economy. The US dollar has remained the dominant currency because of its stability, and it is backed by the full faith and credit of the US government. As such, it has been the preferred currency for governments, businesses, and individuals who are looking to invest in a stable currency.
However, the emergence of cryptocurrencies poses a threat to the dominance and stability of the US dollar. Cryptocurrencies are decentralized, and they operate independent of governments and financial institutions. Therefore, they provide an alternative to fiat currencies and challenge the status quo. The anonymity of some cryptocurrencies also makes them attractive to criminals, and this makes governments wary of their use.

The Perception of Cryptocurrencies in the United States

The United States has always had a contentious relationship with cryptocurrencies. While some states have embraced cryptocurrencies and are actively working towards their adoption, others are opposed to them. In recent years, the US government has taken steps to regulate cryptocurrencies to protect its citizens from financial scams and money laundering.
However, the CEO of Trufusion, Stefan Rust, believes that the United States seems intent on “killing” cryptocurrencies. According to him, it is not financial scams or money laundering that the United States is after, but the status of the US dollar. Cryptocurrencies pose a threat to the dominance of the US dollar, and the United States government is concerned about losing its position as the leading financial power in the world.

The Steps Taken by the United States Government

The United States government has taken several steps to combat cryptocurrencies. In 2018, the US Securities and Exchange Commission (SEC) announced that cryptocurrencies are securities, and therefore, they fall under the purview of the SEC. This means that companies that issue cryptocurrencies must adhere to SEC regulations.
In 2019, the US government passed a bill that requires cryptocurrency exchanges to provide more information about their customers. The bill, known as the Cryptocurrency Act of 2020, aimed to prevent terrorists and other criminal organizations from using cryptocurrencies for illegal activities.
In 2021, the new administration proposed that cryptocurrency transactions worth $10,000 or more should be reported to the Internal Revenue Service (IRS). This proposal is part of a broader plan to improve tax collection and prevent tax evasion.

Conclusion

Cryptocurrencies challenge traditional financial systems and provide an alternative to fiat currencies. However, their decentralized nature and anonymity make governments wary of their use. The United States government is concerned about losing the dominant position of the US dollar and is taking steps to regulate cryptocurrencies. While some view these steps as necessary to prevent financial scams and money laundering, others believe that they are an attempt to kill cryptocurrencies.

FAQs

1. Are cryptocurrencies legal in the United States?
Yes, cryptocurrencies are legal in the United States, but they are regulated.
2. Can cryptocurrencies replace the US dollar as the global reserve currency?
It is unlikely that cryptocurrencies will replace the US dollar as the global reserve currency anytime soon.
3. What is the future of cryptocurrencies in the United States?
The future of cryptocurrencies in the United States is uncertain, but they are likely to be regulated to prevent financial scams and money laundering.
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