While cryptocurrencies bring both potential and difficulties, they will never be able to completely replace the US dollar, according to Wally Adeyemo.
According to Wally Adeyemo, the US Deputy Treasury Secretary, the US national currency will continue to be the most dominant in the globe despite the surge in interest in bitcoin and other cryptocurrencies.
Adewale “Wally” Adeyemo – portrayed the cryptocurrency sector as a contentious one in an interview with CNBC, stating that although it is rife with opportunity, it also presents a slew of possible roadblocks:
“One thing we do know is that digital assets may be beneficial to the economy in a variety of ways, but they can also pose risks.”
The 40-year-old Nigerian-American noted that crypto’s primary issue is its participation in illegal money transactions in a method that “doesn’t involve the dollar and is thus harder to track.” To address this problem, Adeyemo argued that the US government should partner with other countries and strengthen anti-money laundering regulations.
It is worth mentioning, however, that several statistics suggest that cash is still the most often utilised payment method in illicit enterprises such as drug trafficking. By contrast, blockchain technology is completely transparent, since all transactions are recorded on a digital ledger and are accessible to anybody with Internet access.
Adeyemo continued to justify his dollar support by stating that the newly approved $1 trillion infrastructure programme will help “unlock the potential” of the US economy and generate investment possibilities for foreign nations. These trends, he said, would benefit the American national currency:
“Ultimately, what determines the dollar’s global standing will be the choices we make in America on economic investment. The reason individuals participate in the dollar-based economy is to invest in America.”
This is not Adeyemo’s first foray into the cryptocurrency market. In September of this year, he accused Suex, a trade platform located in the Czech Republic, of aiding many illicit ransomware purchases. As a result, the digital asset exchange was prohibited from doing business with US-based organisations.
Numerous financial professionals have expressed their views on the association between the US dollar and digital assets, notably bitcoin.
Larry Fink, Chief Executive Officer of BlackRock, commended the principal cryptocurrency at the end of 2020, stating that it has the potential to develop into a worldwide market. As such, its growth may call into doubt the USD’s hegemony.
After debating whether to join the crypto bandwagon for some time, BlackRock finally done so this summer. The biggest asset management in the world invested $383 million in two bitcoin mining businesses – Marathon Digital Holdings (MARA) and Riot Blockchain (RIOT).
Also Read: Fidelity Has Been Approved As Canada’s First Institutional Bitcoin Custodian
Wallets