An overview of what is happening in the crypto markets, summarised by Crypto Finance AG Senior Trader Patrick Heusser in the market commentary.
I hadn’t planned on posting a market commentary today, but two ladies kind of forced me into it.
Christine Lagarde showed once again that she does not have the slightest clue about cryptocurrencies, especially bitcoin. In my view, money laundering and terror financing are the weakest arguments against bitcoin. I can understand, of course, that a head of a central bank (side remark: with a badly functioning currency/monetary system) feels threatened by bitcoin. And I say this as someone who does not believe that bitcoin will replace any large national currency.
And then we have Janet Yellen, a former central banker and now President-elect Biden’s pick for Secretary of the Treasury, who also has strong concerns that bitcoin is mainly being used for terrorist financing and money laundering. But reading through her statement, it looks like she is more concerned about a particular feature bitcoin offers: anonymous peer-to-peer payment.
These leaders are basically using the powerful leverage of spreading fear among the citizens by accusing bitcoin of being the currency of criminals, which could harm upstanding citizens. But behind closed doors, I am certain that what they really are afraid of is the power shift away from their national currencies. Also, I think they are trying to buy time due to the fact that their CBDC projects are not ready yet. They would like to be the sole architects of the digital currency future, but with bitcoin and the likes evolving so quickly, they fear that they are losing control.
These are my personal 50 cents on those reports. I’m more than happy to hear your opinions and discuss this further.
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