Former U.S. Secretary of State Hillary Clinton warned nations around the world to pay more attention to cryptocurrencies and their growing popularity because she said crypto has the potential to weaken the power of governments and erode the role of the U.S. dollar in the global economy.
“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,” Clinton said during a panel discussion at the Bloomberg New Economy Forum in Singapore Friday.
Clinton, who ran for president against Donald Trump in the 2016 election, cited Russian President Vladimir Putin as a leader who can use cryptocurrencies and cyber tactics to weaken his enemies. Putin has at his disposal “a very large stable of hackers and those who deal in disinformation and cyberwarfare,” she said.
Crypto fans promote Bitcoin as an alternative to the U.S. dollar and a hedge against inflation while stakeholders in traditional markets remain skeptical, despite Bitcoin’s rise from $30,000 in January to an all-time high of more than $68,000 in November 2021.
Bitcoin was trading at $56,195.10 as of this writing.
“Bitcoin is unlikely to replace the dollar as a global reserve currency,” said Marc Chandler, chief market strategist at Bannockburn Global Forex and author of the book “Making Sense of the Dollar,” in a CoinDesk interview. “Backing the dollar is the world’s biggest, deepest and the most transparent government bond market.”
Other market experts are bullish on Bitcoin’s rise. “The most knowledgeable educators in the space are predicting $100,000 Bitcoin in Q1 2022 or sooner,” said Kate Waltman, a New York-based certified public accountant specializing in crypto.
U.S. President Joe Biden recently signed into law a controversial crypto tax reporting requirement as part of the $1 trillion bipartisan infrastructure bill. Starting in 2023, brokers must disclose customers’ names, addresses, phone numbers, capital gains, and losses to the Internal Revenue Service on transactions exceeding $10,000. Some crypto market watchers credit the brokerage surveillance requirement as a reason for the recent market price plunge.
The U.S. dollar is doomed as a fiat currency, Mike Staples commented on MarketWatch. Clinton “identified the risk, but missed the cause,” Staples wrote. “Our dollar’s dominance is threatened by our own actions, not by Bitcoin. Cryptos are merely symptoms; many people are looking for alternatives to our doomed fiat currency.”
“I feel more comfortable with an open source protocol in charge of my money than I do Mrs. Clinton,” Andrew Phillip commented on MarketWatch.
Listen to GHOGH with Jamarlin Martin | Episode 74: Jamarlin Martin Jamarlin returns for a new season of the GHOGH podcast to discuss Bitcoin, bubbles, and Biden. He talks about the risk factors for Bitcoin as an investment asset including origin risk, speculative market structure, regulatory, and environment. Are broader financial markets in a massive speculative bubble?