The ex-head of one of the divisions of Bank of America believes that only political motives prevent the US authorities from banning bitcoin.
Cryptocurrency analyst David Woo, who predicted the fate of bitcoin as an alternative to traditional payment services nine years ago, said that BTC would face economic and geopolitical pressures after the launch of the US national digital currency.
Wu is sure that the US Federal Reserve System (FRS) has not yet given official permission to develop the digital currency of the Central Bank, realizing that in the current situation this is fraught with numerous problems and risks.
“If we go back to the situation in the 70s when they were printing money… do you think they will just encourage people to switch to bitcoin? the expert asks. – Once you have a CBDC, they will know how much money you have. Down to the last cent… Everything will be under the control of the government, at which point it will start cracking down on Bitcoin like crazy.”
As an example, he cited China, where, against the backdrop of the launch of the digital yuan, there was a tough persecution of cryptocurrency exchanges. According to Wu, the main reason why the U.S. has not yet cracked down on bitcoin is because of political tensions.
“The main reason is that the US government does not want to openly side with the banks…. Banks represent established monopolies, a dinosaur payment system, and bitcoin is a newcomer to the system that is becoming more and more efficient. The government is afraid of cracking down too hard because it will be accused of supporting Wall Street in the first place.”
Wu believes that despite the political unpopularity of the decision, the creation of a state digital currency of the United States and the accompanying suppression of cryptocurrencies is inevitable:
“China just launched its CBDC… No one wants China to take the lead, so the US needs to show that America is not ready to give up the dollar’s reserve currency status in this new fight.”
Wu believes that it is Biden’s decree, which “gives high priority to research and development efforts regarding potential options for the design and deployment of the digital currency of the Central Bank of the United States,” that will have a profound impact on bitcoin and attitudes towards the first cryptocurrency will completely change.
Recently, Crypto Council for Innovation (CCI) CEO Sheila Warren
urged to accelerate the launch of the digital currency of the Central Bank. She believes that the technologies accompanying the digital yuan could undermine the hegemony of the US dollar.
Source: Bits
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