Threat to Bitcoin as the US Treasury Department is Devising Strict Regulation Policies for Cryptocurrency
‘’We want to make sure that technology moves forward but, on the other hand, we want to make sure that cryptocurrencies aren't used for the equivalent of old Swiss secret number bank accounts,’’
Bitcoin, in the US, faced very serious attacks from the government officials this week and its upcoming future in the US seems to be difficult. The Treasury Secretary Steven Mnuchin talked about the coming of strict policies for the cryptocurrency and he called these policies ‘’significant’’.
Last year, Munuchin appreciated the critical remarks of President Donald Trump about Bitcoin and cryptocurrencies. Nothing changed Mnuchin’s views about virtual currency besides its outperforming performance.
While talking with Senate Finance Committee, he revealed that Financial Crimes Enforcement Network (FinCEN), the wing department of the U.S Treasury, is laying out ‘’significant new requirements’’ for cryptocurrency.
He went further and said that the regulation is very important to monitor the cryptocurrency’s transactions as these can also replace the secret swiss banks’ numbers. ‘’We want to make sure that technology moves forward but, on the other hand, we want to make sure that cryptocurrencies aren’t used for the equivalent of old Swiss secret number bank accounts,’’ he said.
Cryptocurrencies are ‘’giant garbage dumpster,’’ said Kashkari
The 13th president of Federal Reserve Bank of Minneapolis Neel Kashkari also passed very harsh comments over virtual currency and called these digital currencies ‘’a giant garbage dumpster.’’ He commented,’’ The reason that the dollar has value is because the U.S. government has a legal monopoly on producing the dollar.’’
Kashkari believed that cryptocurrency cannot meet the standards of pure currency to be widely accepted on a large scale.
‘’In the virtual-currency and cryptocurrency world, there are thousands of these garbage coins out there. Literally, people have been fleeced for tens of billions of dollars, and finally the SEC is getting involved in cracking down on this,’’ he said.
Bitcoin Involvement in Money Laundering
The US Department of Justice has arrested Larry Harmon whose software Helix was used as a medium for ‘’money transmitting and money laundering business’’. The news also foreshadowed a negative impact on cryptocurrency as the software used bitcoin for illegal transactions.
Facebook cryptocurrency Libra had also faced very serious hearings by the Senators regarding its regulation as officials are considering it a threat to the US dollar.
The pressure on the part of the US Treasury has disrupted the BTC price value to some extent as it again went below the key figure of $10,000 but still up in year-to-date performance.
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