Whereas China has started issuing it’s own digital currency (which it will use to pay out some of the travel expenses for it’s state employees as from this month), the EU’s Central Bank is looking into developing a digital currency of it’s own. The US meanwhile, seems to be taking a different path altogether.
Although it is noteworthy that the Democrats have tried to introduce ‘digital dollar wallets’ into Congress’ proposed Covid-19 stimulus packages, the Republicans (and the Fed) were eager to get that wording out of the final drafts of those bills. As more stimulus packages are being presented, more options to introduce digital currencies in combination to the dollar are there, but no one seems to be taking the path towards this solution anymore.
This has led Forbes to a strange conclusion. As US lawmakers seemed so eager to destroy Facebook’s plan for an almighty global currency called the Libra last year (which it has revamped earlier this year again), which could threaten it’s hegemony as the financial behemoth of the world, and the Federal Reserve was eager to steer the Financial Regulator towards shutting down messaging app Telegram’s decentralized crypto project, some are wondering whether this is all done to protect the US dollar.
This week, the U.S. financial regulator (SEC) shut down messaging app Telegram’s decentralized crypto project—igniting fears the U.S. could again try to destroy bitcoin if it becomes a threat to the dollar’s shaky supremacy.
96% versus 4%
In fact, Telegram CEO Pavel Durov said it best when he argued the SEC decision “implies other countries don’t have the sovereignty to decide.”
“We, the people outside the U.S., can vote for our presidents and elect our parliaments, but we are still dependent on the United States when it comes to finance and technology. The U.S. can use its control over the dollar and the global financial system to shut down any bank or bank account in the world. Unfortunately, we—the 96% of the world’s population living elsewhere—are dependent on decision makers elected by the 4% living in the U.S.”
With the US economy possibly getting ready to publish a serious recession and subsequent long road towards recovery, the kingdom of the dollar looks shaky indeed. Now that the world’s largest dollar traded commodity, oil, is also falling in price and the Federal Reserve has turned on the money printers, hedge funds have started investing in Bitcoin to protect against inflation.
And thus the question beckons, will the US government allow an unregulated digital currency become a safe haven against an inflating dollar losing it’s top position as the world’s preferred currency, or will it act to forbid the former and outlaw Bitcoin altogether?
Some would say that to omittance of crypto videos from Youtube and Google’s searches last week, both Silicon Valley behemoths who have worked with the US government in the past, is only a first sign.