Fiery statements from a U.S. Congressman stir a storm in the crypto world: "There is no legitimate use for cryptocurrencies"#TrendTradingStragery
In a controversial development shaking the foundations of the digital currency world, U.S. Congressman Stephen Lynch made fiery statements describing cryptocurrencies as "blatant fraud" with no "legitimate use" whatsoever, except for "illegal uses in ransomware attacks." These statements came during a raucous press conference held recently, where Lynch joined a group of Democratic lawmakers who strongly advocated for the development and launch of a central bank digital currency (CBDC).
A fierce attack on cryptocurrencies and an urgent call for CBDC
Lynch's statements weren't the only ones igniting the debate. Congresswoman Maxine Waters, chair of the House Financial Services Committee, described the "anti-surveillance state" bill – which aims to prohibit the creation of a digital dollar controlled by the government – as "an anti-innovation law." Waters warned that this bill, along with the GENIUS stablecoin bill, "poses a threat to national security." This position reflects a sharp divide within the U.S. Congress regarding the future of digital finance.
The White House in the crosshairs: Trump bans CBDCs!
The irony here is that these enthusiastic calls for launching a central bank digital currency come in the wake of a previous decision by former U.S. President Donald Trump, who signed an executive order last January banning central bank digital currencies (CBDCs). This contradiction in positions indicates a complex and politically charged battle that goes beyond mere technology to touch on the foundations of monetary authority and economic sovereignty.
Global divide: Is America falling behind?
While the United States is mired in this debate, other countries are making significant strides in digitizing their local currencies. India, for example, announced in May the expansion of its digital rupee experiments, while Australia revealed plans in July to test its wholesale digital currency. Even the United Kingdom is witnessing a heated debate, as Bank of England Governor Andrew Bailey believes that the central bank should not issue a digital currency, suggesting instead to focus on tokenizing deposits.
This global divide raises a fundamental question: Will the United States be able to find a clear path amidst this heated debate, or will it find itself lagging behind global financial innovation? Will the statements about "blatant fraud" succeed in curbing the spread of cryptocurrencies, or will they only increase the crypto community's determination to prove its value?
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