Bitcoin

Biden should integrate Bitcoin into the US financial system

Niall Ferguson: Biden should integrate Bitcoin into the US financial system

The well-known economic historian said that President-elect Biden should consider integrating Bitcoin into the US financial system.

British economic and financial historian Niall Ferguson said that the United States must find its own way in accepting crypto-currencies Bitcoin Rejoin rather than „building its own version of China’s electronic payment systems“.

In a Bloomberg opinion piece on Sunday, Ferguson said that the current pandemic is generally good for the acceptance of crypto-currencies and accelerates a „currency revolution“ around the world. The historian noted, however, that China is making rapid progress with the introduction of its digital yuan and the increasing use of mobile payments.

Alipay and WeChat Pay handle transactions worth about 40 trillion dollars a year

The historian believes that China serves as a model for other countries developing cross-border payment systems and remittance payments. However, he advised the USA not to take this as a model:

„Even governments that oppose China’s financial advances, such as India, are essentially building their own version of China’s electronic payment systems. Rather than trying to create a Chinese-style digital dollar, Joe Biden’s incoming administration should take advantage of the benefits of integrating Bitcoin into the US financial system“.

Ferguson added that the US authorities already have the necessary resources to work with Bitcoin (BTC), including in law enforcement. The US Internal Revenue Service (IRS) now also requires individuals to disclose their crypto assets in their tax returns. Coinbase users who do not comply with their tax and reporting obligations can also be prosecuted. In addition, the Federal Bureau of Investigation (FBI) also deals with cases of money laundering where crypto is used.

„The point is that the financial data of law-abiding individuals is better protected by Bitcoin than by Alipay“.

It is not known what President-elect Biden thinks about crypto, digital central bank currencies and Bitcoin. But there are indications that certain people in his administration may be able to help create a friendlier regulatory framework for crypto in the United States. For example, Biden is considering appointing former CFTC Chairman Gary Gensler as his Deputy Secretary of the Treasury.