Home News Crypto could undermine dollar’s reserve currency status, Hillary Clinton says

Crypto could undermine dollar’s reserve currency status, Hillary Clinton says

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Former First Lady of the United States Hillary Clinton said that crypto could undermine the status of the dollar as a global reserve currency.

“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”. She said during a panel discussion at the Bloomberg New Economy Forum.

Thus, a well-known member of the community, Matt Odell, noted that Clinton is trying to shift responsibility for the weak position of the dollar to a relatively new industry. “It’s like blaming death “Titanic” lifeboats, not the ship’s designers or its crew,” he tweeted.

Controversial tax reporting requirements

Moreover, the author of books and podcaster Preston Pysh supported Odell’s point of view. In his opinion, the current situation should be blamed on monetary regulators and Congress, which have long adhered to ineffective policies.

According to The New York Times columnist Ben Smith, the head of the Binance cryptocurrency exchange Changpeng Zhao agreed with Clinton, but stressed that it was useless to fight this “threat”.

Clinton’s comment followed the controversial requirements for tax reporting of participants in the crypto industry contained in the infrastructure plan.

Interpretation of the definition of “broker”

The infrastructure plan, depending on the interpretation of the definition of “broker”, miners and node operators in blockchains, wallet developers, liquidity providers in decentralized finance (DeFi) protocols and non-custodial players should report to the Internal Revenue Service (IRS) on the activities of their clients.

Recall that the US Congress proposed to change the definition of “broker” in the infrastructure plan.

The House of Representatives passed controversial infrastructure measures with a vote of 228 to 206 in favor of President Biden. Furthermore, the crypto community expressed worry about the ambiguous definition of the term “broker”. Which might result in unreasonable tax reporting obligations for sub-communities like miners.

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