On Wednesday, the 11th of March, U.S. President Joe Biden signed an executive order for the Government to investigate the risks and benefits of cryptocurrencies and to begin outlining what the future of cryptocurrencies might look like in the U.S. in 2022.
For anyone involved or who follows cryptocurrency news, this comes as no surprise considering the number of people buying, selling, and trading cryptocurrencies continues to grow at a rapid rate.
So what will this investigation focus on:
- How can the U.S. compete on the global stage
- How can investors be protected against illicit activity
- How can illegal online activity be tracked and traced
- How can the Government monitor and maintain financial stability
Whether you agree with the government involvement or not, it was only a matter of time before there was some form of intervention to help stabilise what some people are calling the "wild-west age" of crypto trading.
Most weeks, we see stories of how people have been scammed out millions through online attacks or fraudulent transactions. So, depending on the results of Biden's investigation, we could potentially see some considerable changes to the crypto market as a whole.
But, one thing is for sure; crypto is here to stay.
While many have been debating whether crypto was just a fad, the U.S. government's direct involvement in the future of crypto trading shows that the powers that be view crypto as a part of America's economic future.
You can find the entire White House run down here of what the investigation will involve.
The U.S.'s competitiveness
As you might have already guessed, a big part of the investigation will focus on how the U.S. can have a global competitive edge on crypto trading.
This seems like a no brainer when you consider that China has banned crypto trading, leaving the door wide open for the U.S. to come in and take the top spot.
U.S. crypto companies such as Coinbase, Crypto.com, and LedgerX will no doubt welcome the U.S. government's move towards further global competitiveness as it will help secure their individual growth for the foreseeable future.
In addition, you can expect to see new companies appear on the U.S. market if the Government continues to express confidence in the future of crypto trading. Not to mention the companies that are already leaving countries where crypto trading is banned in order to continue their business in more crypto friendly nations.
Keeping crypto traders safe
While it would be impossible to make crypto trading 100% secure, the investigation will look at how the government can implement regulations and checks to ensure that assets are less at risk to cyber-attacks and online theft.
For although blockchain technology has proven to be an incredibly effective way to secure digital assets, no doubt Biden will want to continue to find new ways to ensure users' online safety.
With Biden already discussing a greener future for America and the world, no doubt he wants to address the environmental impact of digital currencies and how companies will have to adopt greener strategies if they want to continue operating in the U.S.
As we already know, cryptocurrencies aren't exactly known for being environmentally friendly, given that the Bitcoin mining process involves computers running 24 hours a day to complete the complex puzzles involved.
However, we are already seeing new crypto coins appear, such as Avalanche and Algorand, which are actively doing their best to reduce their carbon footprint.
This focus on a greener future will help companies win public attention, given the pressure already on businesses to reduce their emissions.
The digital dollar
Whether it was a Democrat or a Republican in the Whitehouse, times are a changing, and it was inevitable that the question of a digital dollar was going to be raised over the next few years.
People are using cash less and less, with some businesses no longer even accepting it, which begs the question of whether cash will be used in the next 5-10 years.
Studies also show that 16% of Americans have already invested in some form of digital currency, with 49% of those being young adult males between the ages of 18-29, which indicates that the younger generations are placing a lot of faith in future of digital currencies.
Mr Biden's executive order is a significant step in the journey towards crypto becoming a more mainstream and accessible payment solution, but there is still a way to go.
Last year the global crypto market grew to nearly 3 trillion dollars, and with the popularity of crypto continuing to grow, this could be a low ball figure in the coming years.
To reiterate an earlier point, we can interpret from this executive order that cryptocurrencies are here to stay - the president of the USA has decided that there needs to be government involvement and oversights to ensure that cryptocurrencies can be traded safely and help contribute towards the U.S. economy.
In short, we can expect to see more stability in crypto trading as well as a broader marketplace that will see new players that will help boost the crypto evolution.
For those who see the true potential in blockchain technologies, you can start investing today with Nebeus.
La inversión en criptoactivos no está regulada, puede no ser adecuada para inversores minoristas y se puede perder la totalidad del monto invertido.