“Crypto FUD” — The White House reports that the industry is outraged at crypto

“Crypto FUD” — The White House reports that the industry is outraged at crypto

The report contained 35 pages that seemed to be aimed at discrediting the benefits of crypto assets.

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Crypto executives are upset at the White House’s latest economic report, which features a whole chapter that cast doubts on digital assets.

The White House’s first section on digital assets has been included in the Economic Report of the President , which was released March 20.

Fred Ehrsam, co-founder of Paradigm digital asset investment firm Paradigm made the comment that 15% was dedicated to “cryptoFUD.”

This report contains 35 pages on debunking “Perceived Appeal Of Crypto Assets” along with a brief section on the FederalNow payment system, and central bank digital currency.

According to the report, the main argument for crypto assets is that they fail to deliver on their supposed benefits such as improved payment systems, financial inclusion, and creating mechanisms to transfer intellectual property and value.

“Instead, their innovation was primarily about creating artificial scarcity to support crypto assets prices — many of which have no fundamental value.”

It also claims that cryptocurrencies are unable to fulfill the functions of sovereign currency, such as the U.S. Dollar. Crypto prices fluctuate too much to be a stable store value and they cannot function as a unit or medium of exchange.


Excerpt from Chapter 8: Digital Assets: Relearning Economic Principles Source: Economic Report of the President

Stablecoins are also targeted in the report. They are deemed too risky and subject to run-risks to fulfill their function as a fast payment instrument.

Kristin Smith CEO of the Blockchain Association called the most recent presidential report “disappointing”, stating that it showed that some government officials are “increasingly allergic to” the growing crypto industry.

“We urge the Biden Administration to think about how it will be remembered, whether as a leader in profound innovation or a roadblock for a global tech revolution.”

The report also highlights decentralization, arguing that, “despite claims to be decentralized and trustless,” blockchain-based applications in practice are neither.

It argues that users can access crypto assets through a restricted set of crypto asset platform platforms. However, a select group of miners does the majority of mining in most crypto assets.

Related: House Republicans direct criticism of Biden administration’s digital asset policies

Two weeks after the collapses at Silvergate, Silicon Valley, and Signature banks, the latest annual economic policy report was released. All three banks had been serving aspects of the crypto market.

Chief growth officer of Acala Network’s decentralized finance platform Acala Network Dan Reecer claims the report is “just days” after Option Chokepoint 2.0 was carried out on crypto-friendly banks.

Source: Twitter

He also pointed out an “obviously early warning” about an upcoming United States CBDC (or digital dollar). This refers to a section in the report that seems to tout the benefits of a U.S. central banking-controlled currency.

Similar: Unstablecoins : Bank runs, depegging and other risks loom