The Secretary of the US Treasury held a press conference to address the concerns around the popularity of cryptocurrencies, especially Bitcoin and Libra. Since Facebook’s announcement of Libra, many regulating and statutory bodies in the US have come out and expressed their doubts.
Secretary Steven Mnuchin issued the address as an emergency announcement on cryptocurrencies. The highlight of the speech was primarily security concerns around the illicit use of cryptocurrencies. These include money laundering, trafficking, and terrorist financing.
Nevertheless, he seemed comfortable with the prospects of it being used as a speculative instrument. He said,
I’m not speaking on the investment merits of bitcoin, and using it for speculation. I am speaking on stopping the illicit financial activity.
Although it was an emergency speech that made many traders apprehensive at the moment. However, the market has gained about $750 since then. The price of Bitcoin at 3: 45 hours UTC on 16th July 2019 is $10786. It was trading around $10,200 before the announcement and touched a 12-hour high around $11,050.
Mati Greenspan, the Senior Market Analyst at eToro, shared the price analysis of Bitcoin as the speech was made. He tweeted,
Bitcoin is up 5% since Mnuchin started his emergency crypto speech 1 hour ago.
Nevertheless, he also mentioned that cryptocurrencies are considered “national security at the moment.” Hence, even while the traders and investors seem to be in the clear, various regulations and new law impositions can be expected from the US. Mati Greenspan said,
This attack seems to be targeted at Libra and not at bitcoin but there’s no doubt they’re about to crackdown on the entire industry.
Moreover, Secretary Mnuchin explicitly mentioned that the primary reason behind the emergency address was the attention grabbed by Libra. On Friday, the President of the US, Trump, also expressed similar views. He said that he wasn’t a ‘fan of Bitcoin.’ Both Mnuchin and Trump believe that its value is based on thin air.
Nevertheless, the crypto-community still sees it as a triumph. The mainstream attention and even a partial acceptance at the moment in welcomed by the traders. Vinny Lingham, crypto-Analyst and trader tweeted about these sentiments of progress for a crypto-trader, as he said,
2009: What’s a Bitcoin?
2014: Bitcoin is dead!
2019: Should we ban Bitcoin?
2024: What’s a Dollar?
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Do you see this as a win for cryptocurrencies or an issue of concern? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Journalist at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com