Bitcoin big enough to shake the US economy? The Fed and the SEC on high alert

Going from “ridiculous” to scary – Gone are the days of neglect and denigration Bitcoin (BTC), it has now become the major concern bankers and politicians of this world. the US Pentagon wants to study “threats”the European Union wants to protect itself against it with the straightjacket of MiCA Law. This time it’s the Federal Reserve (Fed) and the Securities and Exchange Commission (SEC) who express their deep concern for this problematic dollar competition.

Bitcoin: “useless wind” has become a “systemic risk” for the USA

English finance and economy didn’t need bitcoin to be greatly destabilized. To the point of forcing an umpteenth money printing (as a matter of urgency) from the Bank of England to save pension funds. Yet cryptocurrencies seem oddly to be enemy number 1 of the world’s central bankers and financial regulators.

In the United States, instead of talking about multiple harmful interventions central banks, so it was Bitcoin and cryptos that were invited to the table of a meeting from Financial Stability Oversight Council (FSOC, Financial Stability Oversight Council).

Chaired by the US Treasury Secretary, Janet Yellenthis cream of American bankers and regulators used to say that Bitcoin and crypto-assets would be a great threat to financial stability of the richest country on the planet.

“If the interconnections [des cryptos] with the traditional financial system, or their overall size were to grow (…) and if this growth were to occur without being associated with appropriate regulation (…), digital assets could represent a systemic risk. »

Jonathan Rose, economist and adviser to the Federal Reserve Bank of Chicago.

US bankers see Bitcoin as a threat to the country’s economic stability.

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They don’t understand why Nakamoto didn’t trust the bankers

More fun, the president of Securities and Exchange Commissionalso present at the FSOC meeting, criticized… Satoshi Nakamotothe creator of Bitcoin!

In effect, Gary Gensler lamented that the anonymous founder of the cryptocurrency industry had suspicions of incompetence and/or malice on the part of central bankers.

“(…) Bitcoin was offered 14 years ago this month. Via a Cypherpunk mailing list. It was Halloween night in 2008, in the midst of a financial crisis. Satoshi Nakamoto was talking about a new way to transfer value over the Internet, without a central intermediary. Nakamoto- we still don’t know who he, she or they were – did not have confidence in the financial sector, supervised by people like us, seated around this table. »

Gary Gensler, Chairman of the SEC

And when we see that the world is again on the edge of a major economic disaster, we understand why. Because blaming the conflict in Ukraine is very easy and practical, but the roots of evil are deep, and long before the war.

These are indeed the countless monetary impressions central banks, carried out since 2008, which ended up cause gigantic inflation rates. Inflation which will either strangle households or indirectly cause the financial market crash. This is because of aggressive rate hikes by central bankers to combat it. By creating Bitcoin, Nakamoto understood that we lose every time with the fiduciary currencies of these people.

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John R. Zepeda

I have extensive experience working as a content writer in the areas of cryptocurrencies and finance, where I create interesting pieces that both inform and engage their audiences.

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