As the world’s major social networking site is coming with the new technology different than other cryptocurrencies, the dollar might be at risk. So, the US government has to deal with the threat that hanging like a sword on the dollar’s neck.
Now look at the statement released in twitter soon after the Libra’s announcement:
“I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air.” Trump tweeted.
It doesn’t matter what his view on crypto-assets. However, being a president of the United States it is highly inappropriate to stand against the world most popular cryptocurrency.
He didn’t stop there. Again He blamed cryptocurrencies for its involvement in various illicit activities like drug dealing etc. His exact tweet was—
“Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity.”
His unnatural behaviors busted many traders’, collaborators’ and creators’ state of mind. Bitcoin magazine couldn’t stop to reply where he was targeting the fiat currencies like trump targeted cryptos. In his reply, he wrote,
“Untraceable, physical cash is the best tool for facilitating drug trades and unlawful activities, not a public ledger that records the history of every transaction ever made.”
It used the technical advantages of blockchain to clear the concept of bitcoin’s illegality.
Trump added his further sentences for Facebook, he wrote,
“Similarly, Facebook Libra’s “virtual currency” will have little standing or dependability.”
As Libra announced in June of 2019 since then Facebook is trying to build a communication with the US government to bring a fully regulated crypto, Libra.
Without investigating the depth of the concept of Libra, Trump stated,
“If Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations, just like other Banks, both National and International.”
This statement of trump is acceptable. However, the fact is Facebook is not going to be a bank. It wants to bring fully regulated cryptocurrency for international transactions. If Facebook wants to become a bank then it would do years before.
The further extension of trump’s tweet indicates that he is devoted to gathering the publicity towards the USD. The fear war clear in his tone as if Libra launches it branch in globally then Libra will become the highest acceptable international transaction asset. Even after bitcoin’s launch USD is still accepted globally which help the USA to hold its name on the top list of the economy. The only drawback that bitcoin has is that it is not backed or regulated by any trusted body though the transactions are fully transparent.
Let see what he added after,
“We have only one real currency in the USA, and it is stronger than ever, both dependable and reliable. It is by far the most dominant currency anywhere in the World, and it will always stay that way. It is called the United States Dollar!”
Trump had toughened up the publicity of dollar fearing downfall of dollars value in the market.
What Effect Could It Bring On The Crypto-Market After The Tweets?
Trump has only stated the term with which the people are already aware of. There will be no issue that could affect the bitcoin. However, transparency has reflected through the tweet that Trump could do anything to bring up the dollar popularity back in the market. Though some market analyst of cryptos considers the tweet as a bluff there can be a consequence. May be Trump has not done anything yet but it’s not clear what he is up to. Does he have something in mind about bitcoin and other cryptos?
What Trump/US Government Did To Petro?
Trump maybe not the threat to the cryptocurrencies but what he did to Petro can be done with other currencies too.
Petro is a government baked cryptocurrency of Venezuela which is banned in the USA since 2018. As a USA citizen or US permanent resident, no one can trade, transfer, buy, sell or do any other services via Petro. It is also restricted in the USA to hold Petro in crypto-account. Trading in crypto is illegal in the USA and it is the first of its kind which has terminated its access in the USA trading market.
What is the Future of Bitcoin in the USA?
As trump’s thought reflected through his actions on the Petro then no one could be guaranteed the further aspect of Trump on cryptocurrencies. US government now has taken a pledge to set all cryptocurrencies under a proper regulation after the announcement of Libra.
As many countries are researching a perfectly constructed law to regulate the cryptocurrencies, the USA was not on the list. Suddenly, 2018, the US government declared restriction on us citizens to deal with Petro, surprised the world.
In June 2019, after the launching of new technology, Libra by Facebook, USA has become mercurial to generate a law for cryptocurrencies. Maybe it is solacing the crypto trader that there nothing to worry about but it is still is the uncertainty of legalization of Cryptocurrencies in the USA.
The United States Congress is weighing nearly 20 bills called senate bill 1025, related to blockchain technology.
Underneath the bill, there is only one consideration that is taken care of that cryptocurrencies use for humanitarian relief. Laws are working in progress to regulate the bitcoins and other cryptocurrencies in such a way that money laundering, drug trading should be stopped.
Internal revenue service or IRS is suspected to be the mastermind of the bill. It is trying to control companies and trying to pull in under tax regulation. Over thousands of companies are warned via delivering letters to them. Under the letters, 6174-A, 6173 and CP2000, it is subjected to pay the tax amount to the US government with penalties and dues.
Aims are clear and the US government is not going to consider any loopholes for scammers to steal the assets. The regulation of cryptocurrencies will bring the bitcoin to be a regulated cryptocurrency in the USA. Mainly focusing on the dark web of the cryptocurrencies the USA government is determined to come up with strong laws to regulate the cryptocurrency trading in the USA.
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