US Commerce analyses Bitcoin Policy Institute’s crypto report
President Joe Biden of the United States issued an executive order mandating that the International Trade Administration collect public input about digital assets and American competitiveness.
As a direct consequence, the Bitcoin Policy Institute presented a report on Digital Asset Competitiveness to the United States Department of Commerce. The research published on July 5 examines how an open monetary network might benefit American interests.
The paper investigates the consequences for the U.S. aims in financial inclusion and consumer welfare before focusing on Bitcoin’s most essential and valuable characteristics.
Moreover, problems about national security, energy usage, Bitcoin mining, and competitiveness were examined.
In terms of financial inclusion 19 percent of Americans, according to Federal Reserve research, are either unbanked or underbanked, with greater percentages among “people with lower income, individuals with less education, and Black and Hispanic adults.”
For the bulk of digital transactions, a variety of intermediaries are important to process and settle payments and prevent fraud. The research says that as a result, users spend between 1.5% and 3.5% on credit card processing and interchange fees.
In contrast, cryptocurrencies like bitcoin provide many reduced costs since they eliminate the need for centralised middlemen. We anticipate that further innovation and increased access to new payment protocols, such as the Lightning Network, will not only reduce transaction costs for underbanked Americans but will also put pressure on existing financial institutions to reduce prices.”
Insofar as U.S. competitiveness stands to gain from domestic technical innovation, stock market growth, and as an attractive destination for international talent.
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