• The White House released a report on digital assets and cryptocurrencies, claiming that many have “no fundamental value”.
• The report questioned the viability of the US issuing its own central bank digital currency (CBDC) but did not rule it out.
• Christine Lagarde, president of the European Central Bank, believes that a digital euro is necessary to preserve European payment autonomy.
White House Report on Crypto
The White House recently published a 513-page annual report which raised concerns about elements of the cryptocurrency ecosystem. It highlighted the drawbacks of digital assets and stated that some cryptos have “no fundamental value”. Furthermore, the report questioned the viability of the US issuing its own central bank digital currency (CBDC).
Worries at White House
The news has caused anxiety in the crypto industry as federal regulators are attempting to debank crypto businesses. The tone of this report is unlikely to ease these fears as it suggests that investments in national financial infrastructure could offer major benefits to consumers and business.
The economic update acknowledges that distributed ledger technology has potential and might be realized in future developments although there was no specific discussion on how this could occur.
Christine Lagarde, President of the European Central Bank (ECB), believes that a digital euro is crucial for preserving European payment autonomy and warned against relying too heavily on one supplier for important daily necessities like payments.
Overall, while some advantages of distributed ledger technology may yet be realized in future developments, most cryptocurrencies have been deemed by the White House to have no fundamental value at present. This could cause further worry for those involved in crypto businesses as federal regulations seek to debank them from traditional financial services providers.