Is Joe Biden's choice for the best economic advisor good or bad for crypto?
Is Joe Biden's choice for the best economic advisor good or bad for crypto?
The President of the United States-Joe Biden-is reportedly appointed Lael Brainard (Vice Chairman of the Federal Reserve) as his Supreme Economic Advisor.
The latter is a critic of cryptocurrencies and argues that they could undermine America's financial stability. On the other hand, she is a supporter of a digital dollar who would be strongly centralized and monitored by the authorities.
Anti-crypto position
according to Bloomberg Cover , Lael Brainard will soon appoint his top financial consultant. Previously, she worked in the White House as deputy director of the National Economic Council (NEC) under President Bill Clinton. Brainard was also nominated by Barack Obama in 2014 as a Fed governor.
The Democrat is known as the opponent of cryptocurrencies, opinion that the participation of the banks in the investment class could cause a monetary chaos. She believes that a possible collapse of the market for digital assets in the financial sector could be appealed.
Brainard was concerned about Decentralized Finance (Defi) and said that the new technology could be a catalyst for possible illegal activities:
"The unauthorized exchange of assets and tools that obscure the source of money not only makes the circumvention easier, but also increases the risk of theft, hacks and ransom attacks."
Lael Brainard, Fox Business
Pro-CBDC
At the same time, bidens of future economic advisors are impressed by the creation of a digital dollar. You announced that the American central bank worked on such a financial product almost three years ago:
"We conduct research and experiments in connection with distributed LEDGER technologies and their potential application for digital currencies, including potential for a CBDC. We work with other central banks to expand our understanding of digital central bank currencies."
Brainard doubled her vision a few months ago, Preserver-Spaces = "True"> claim A digitized version of the greenback could be improved consumer protection offer: "It is important that the United States play a leading role in the development of standards for international digital financial transactions with CBDCs that correspond to the standards for data protection, accessibility, interoperability and security." Your transfer to the White House opens up a job at the Federal Reserve, which has started a campaign to combat inflation through interest rate increases. Some crypto participants believe that the market could enter a bull mode as soon as the central bank deviates from its strategy. The Chairman of the US Federal Reserve, Jerome Powell, recently specified that inflation should decrease to 2 % before they set the interest rate increases. He also predicted that the goal was not achieved this year. crypto usually drove south after every announcement via rising interest rates, which means that it could suffer from the plans of the Fed. The appointment of Brainard, with the intention of the US IPO supervisory authority SEC, coincides with the digital asset sector of an additional regulatory examination. The watchdog accused to offer American consumers as staking services. Shortly afterwards the platform stopped his product and paid $ 30 million in degorable, civil penalty and prejudice interest. The next victim was the StableCoin emittent-Paxos. The New York State Department of Financial Services asked the company to hire the issue of new Binance Stable Coins (BusD), while the SEC described it as non-registered securities. Paxos followed the request and announced From February 21st no longer shaped such tokens. Selected image with the friendly approval of FT . The USA aims on crypto companies from