The rising concerns over cryptocurrency in US may be a deterrent

18 Jul, 2019 | Updated: 18 Jul, 2019
by Manshi Soneji Mamtora
News
The rising concerns over cryptocurrency in US may be a deterrent

US may be a falling behind in crypto innovation as regulators display concerns about Libra and Bitcoin. Countries like Venezuela and Cuba resort to cryptocurrency as they wish to cut down dependence on the US dollar.

Amidst the hatred comments that came from the top tier in US, it seems like crypto lovers are choosing other counties as their haven. Recently, crypto fund manager Brian Kelly pointed out on CNBC saying, ''The US may have already lost the race…It’s very concerning to me. Asia is eating the U.S.’ lunch. The U.S. is the center of finance. We should take the lead in it.”

Libra coin moved to Switzerland with lawmakers taking it longer than expected in the US to accept cryptocurrencies and regulating them with trust in head.

CoinShares Chief Strategist, Meltem Demirors testified before the US House of Financial Services to help the lawmakers differentiate between Bitcoin and Facebook's upcoming stint in crypto. She mentioned that cryptos are not going anywhere pointing the $266 billion worth of market cap. 

Commenting on the US stand in cryptocurrency market, she said, ''Lawmakers are very aware that the US needs to remain competitive, that regulatory clarity is tantamount…I think it’s too early to say whether new regulation will be applied. I do think we’ll see the formation of a committee to focus on the issue of cryptocurrencies and possibly a subcommittee to focus on the issue of Libra.''

Studies also support that US adversaries could potentially be weaponzing the cryptoassets. According to Foundation of Defence of Democracies or FDD, a study titled 'Crypto Rogues - US State Adversaries Seeking Blockchain Sanctions Resistance', for decades those countries that the US put on its naughty list sought ways of evading these sanctions but were unable to conduct significant international commerce without moving through the pipes of the US-led global financial system.

Countries like Venezuela and Cuba are already seeking crypto-backed strategies to cut their dependence on the US Dollar. Venezuela adopted Petro-oil-backed national cryptocurrency, and also summoned banks to start accepting deposits in this crypto to sidestep the dependence on the US.

Cuba could follow a similar route and is looking into the potential use of cryptocurrency. 

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