Bitcoin ‘undermines the dollar’ – Hillary Clinton issues a surprising crypto warning as El Salvador sends the price of bitcoin soaring
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Bitcoin and cryptocurrencies have seen an upswing this year, with Bitcoin now being held by Elon Musk’s Tesla and being adopted as local currency by El Salvador.
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Bitcoin price made up some of its losses after a sharp sell-off earlier this week – rising back towards $ 60,000 per bitcoin, helping the broader rally in the crypto market. Bitcoin price has soared 200% since that time last year, bringing the combined crypto market cap to nearly $ 3 trillion.
Hillary Clinton, the former US presidential candidate and Secretary of State under President Barack Obama, has now warned that bitcoin and cryptocurrencies could undermine the reserve currency status of the US dollar.
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Hillary Clinton is the latest high profile politician to warn of the rise of Bitcoin and … [+]
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“What looks like a very interesting and somewhat exotic attempt to literally mine new coins in order to trade them has the potential to undermine currencies, undermine the dollar’s role as a reserve currency, destabilize nations, perhaps starting with small ones.” but much bigger, “Clinton said during a panel discussion at the Bloomberg New Economy Forum in Singapore, adding that she hoped” nation states will begin to pay more attention to the rise of cryptocurrency. “
Clinton, whose presidential campaign was marred by hacks in 2016, also criticized Russian President Vladimir Putin, accusing him of stationing “a very large stable of hackers and those who deal with disinformation and cyber wars”.
Recent data from Chainalysis has shown North America to be the world’s largest victim of crypto-based ransomware attacks, with those hit by hackers paying out $ 131 million in cryptocurrency to criminals over a 12-month period. Most of the attacks came from gangs based in Russia.
Following Clinton’s comments, El Salvador’s President Nayib Bukele announced that the country was planning to build a “Bitcoin City,” originally funded by Bitcoin-backed bonds.
In September El Salvador became the first country in the world to officially introduce Bitcoin as legal tender and now uses it as its national currency alongside the US dollar. Other countries in the region are considering following in El Salvador’s footsteps. Earlier this month it was reported that Zimbabwe was investigating the adoption of cryptocurrencies as a means of payment.
“This will make El Salvador the financial center of the world,” said Samson Mow, chief strategy officer of blockchain technology provider Blockstream, speaking alongside Bukele at an event to close a week-long Bitcoin advertisement in El Salvador.
News of El Salvador’s plans for a bitcoin city designed to boost investment in the country helped the price of bitcoin soar after a turbulent week.
Bitcoin price fell 20% through mid-November, falling to lows of around $ 55,000 per bitcoin, after hitting a record high of nearly $ 69,000 in the lead-up to a closely watched Bitcoin upgrade.
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Bitcoin price has increased 200% in the last year, aided by adoption by the likes of Elon … [+]
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Countries around the world are already wrestling to contain the scorching hot bitcoin and crypto market.
In the US, President Joe Biden signed a huge infrastructure bill this week that introduces strict new tax reporting requirements for Bitcoin and crypto companies. Beginning in 2023, brokers will have to submit customer names, addresses, phone numbers, capital gains and losses to the Internal Revenue Service, while companies receiving more than $ 10,000 worth of crypto payments will have to report the identity of the sender to the government.
Earlier this week, India’s Prime Minister Narendra Modi urged countries to work together to prevent cryptocurrencies from “falling into the wrong hands”.
India plans to ban the use of Bitcoin and cryptocurrencies for payments, but will allow holding and trading of digital assets in a similar way to stocks and bonds, according to local media reports.
A sweeping ban on Bitcoin and cryptocurrencies in China has been blamed in part for the devastating Bitcoin price and the wider crash of the crypto market earlier this year.
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