This was my third time going over the White House report and I must say governments just being government. The report reads like a kids picture book. It does start off with some fair points like the fact that algorithmic stablecoins are prone to instability in volatile markets, that some virtual assets can be very volatile and that the banking system does not adequately serve citizens, but the rest of it just makes makes no logical sense after stating these premises and turns into a steaming pile of garbage. I want to go through some direct quotes so that you're sure I'm not vomiting this crap up.
"Today, traditional finance leaves too many behind. Roughly 7 million Americans have no bank account. Another 24 million rely on costly nonbank services, like check cashing and money orders, for everyday needs."
Then later it goes.
"The digital economy should work for all Americans. That means developing financial services that are secure, reliable, affordable, and accessible to all. To make payments more efficient, the Federal Reserve has planned the 2023 launch of FedNow—an instantaneous, 24/7 interbank clearing system..."
So what they say is that banks are inadequate and then immediately go on to brag about a plan for an interbank clearing system. This does NOTHING to help people left out of banking. It may speed up payments for between banks, but this is nothing to actually help more citizens get access to any bank in particular. They even admit in the quote that all FedNow does is make existing user transactions more efficient but this is useless in getting the unbanked people banked.
"paying with traditional financial infrastructure can be costly and slow—particularly for cross-border payments."
"Agencies will prioritize efforts to improve the efficiency of cross-border payments by working to align global payments practices, regulations, and supervision protocols while exploring new multilateral platforms "
So they admit how poor fiat is for cross-border payments and only look to further complicated existing system and keeping digging to see if they hole gets shallower. XRP Anyone? It is indeed a heck of a day when, while they have their reasons, Russia is leading the world or at least the US in financial tech adoption and enhancement.
"Stablecoins, in particular, could create disruptive runs if not paired with appropriate regulation.The potential for instability was illustrated in May 2022 by the crash of the so-called stablecoin TerraUSD..."
Of course they conveniently omit the fact that UST was an algorithmic stablecoin. I could be fair and admit that algo-stables have crashed a lot in the past. But it is hugely unfair to blanketly label them all. As a matter of fact, it is simply ludicrous to do so the dollar-collateralized stables as they are one of the most safe assets in any market and any class. Whatever happens, investors would always be able to redeem a token for its full dollar value.
"U.S. agencies will leverage U.S. positions in international organizations to message U.S. values related to digital assets"
So instead of letting a product provide value to users and improve their lives, you want to water it down or kill it entirely just to maintain control and satisfy your ego. On top of that, the whole statement just sounds SUPER commie to me. Not very free-market capitalist at all.
"digital assets— some of which are pseudonymous and can be transferred without a financial intermediary —have been exploited by bad actors..."
Now why the heck would you want an intermediary. They make it sound like a good thing. Like we should want a middleman taking a cut and making everything more expensive, cumbersome and miserable. And of course, we know who'd like to be that middleman, as they go on to talk about the benefits of the CBDC that
"could enable a payment system that is more efficient, provides a foundation for further technological innovation, facilitates faster cross-border transactions, and is environmentally sustainable"
All of which crypto can and already has done. So basically they just plan on doing over the achievements of crypto. Which just arguably with the exception of the last one depending on how and where you look.
I can't say I'm too worried tho because if they are really this clueless crypto has already won. People will gravitate to the thing that gives them the most value and government will be forced to fall in line.
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