While US President Donald Trump was busy firing Bitcoin, Libra and other cryptocurrencies, Treasury Secretary Steven Mnuchin warned Congress that the government is running out of cash faster than it expected.
Will Crypto Becomes the Best Alternative.?
President Donald Trump’s lashing tweets against Bitcoin and cryptocurrencies were still hot when the United States’ Treasury Secretary Steven Mnuchin brought up a quick warning yesterday, on July 12, 2019. The warning that put the US into a panic mode because Mnuchin wrote the US might default on its obligations in early September if Congress doesn’t raise U.S. borrowing authority.
In a letter, Mnuchin wrote that,
“Based on updated projections, there is a scenario in which we run out of cash in early September, before Congress reconvenes,”
This took the attention of few crypto leaders such as Anthony Pompliano who quickly remarked as;
BREAKING: Treasury Secretary Steven Mnuchin has just warned that the US may run out of cash by early September.
Good thing they can simply debase the currency by printing more! 🙈
— Pomp 🌪 (@APompliano) July 12, 2019
The fear of pressure is that Mnuchin doesn’t know how long the Treasury’s existing resources can last; thus, he requested Congress to increase the “debt ceiling before Congress leaves for summer recess.”
Crypto and the United States
The stance of the crypto industry in the United States is, unfortunately, hostile. Although its technology innovation is robust, the regulations around crypto are right now unclear. With the country’s weakening position in the form of Cash, the crypto community is speculating the United State to turn to the digital form of money, the Bitcoin.
Also, few other speculates that the US may print more dollars – concerning the similar point, Binance CEO CZ on July 12 hits an indirect tweet, he said;
Feel free to print as much as you need, as I am already all in crypto.
So far we have seen many countries jumping to issue their own cryptocurrencies – few such names are China, Turkey, Sweden Ukraine, Russia, Iran and so on. At the time when adversarial countries rushing to a have their very own digital currency wallet infrastructure, United State is running backward.
The revolution of the country issuing their own cryptocurrency could make them an independent nation, allowing their citizens.
However, the new report published on July 11, by the United States Foundation for Defense of Democracies (FDD) speaks about current and future risk associated with the use of cryptocurrencies by other countries to the United States.
The report entitled “Crypto Rogues – U.S. State Adversaries Seeking Blockchain Sanctions Resistance” cautioned that the countries using blockchain and the virtual currency might build significant reserves in the cryptocurrency. It reads that;
“An independent cryptocurrency such as Bitcoin [BTC] gains wide adoption in commerce and becomes more relevant to the global financial system. Then, a U.S. adversary begins to build significant reserves in the cryptocurrency. The state thus uses its holdings to gain more influence in the global financial system,”
What do you think readers.? Will the United States see crypto as an alternative solution.? Let us know in the comment section below.
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