Cryptocurrency might jeopardize the dollar’s status as the world’s reserve currency, according to Hillary Clinton
Former U.S. Secretary of State and Democratic Presidential Candidate Hillary Clinton criticized cryptocurrency on Friday, urging governments to monitor their rise.
Clinton spoke at the Bloomberg New Economy Forum in Singapore at a panel discussion:
“One more area that I hope nation-states start paying greater attention to is the rise of cryptocurrency because what looks like a very interesting and somewhat exotic effort to literally mine new coins in order to trade with them has the potential for undermining currencies, for undermining the role of the dollar as the reserve currency, for destabilizing nations, perhaps starting with small ones but going much larger,”
While crypto enthusiasts have long lauded bitcoin as a superior alternative to the US currency, conventional financial analysts argue differently. “Bitcoin is unlikely to replace the dollar as the world’s reserve currency,” Marc Chandler, chief market strategist at Bannockburn Global Forex and author of “Making Sense of the Dollar,” told CoinDesk last year. “The world’s largest, deepest, and most transparent government bond market backs the dollar.”
Clinton’s remarks came in the aftermath of the contentious crypto tax reporting provision included in the $1 trillion bipartisan infrastructure plan signed into law by US President Joe Biden on Monday. According to the plan, beginning in 2023, brokers must report to the Internal Revenue Service their customers’ names, addresses, phone numbers, capital gains, and losses. Entities that receive cryptocurrency payments worth more than $10,000 will be required to report the identify of the sender to the government.
Earlier this week, India’s Prime Minister Narendra Modi called for a collaborative effort by democratic countries to ensure that cryptocurrencies do not “end up in the wrong hands, which can spoil our youth.”