- Bitcoin has grown to become the most popular cryptocurrency in the world. It currently trades at $55,755 and has a market capitalization of $1.04 trillion.
- While Bitcoin offers decentralization and relative anonymity, there has been a wide schism between supporters and opponents of cryptocurrencies.
- Prominent politicians like Janet Yellen, Nirmala Sitharaman, Xi Jinping, and Donald Trump have differing views on Bitcoin.
LorBitcoin and other cryptocurrencies are changing the face of finance as more people are learning about them and investing in them. Last weekend, Bitcoin reached its all-time high, trading at over $61,000.
Since entering the big stage, Bitcoin has been a hotly debated topic among policymakers, with several politicians calling for the adoption of cryptocurrencies to bolster the economy, while others have outright called it a bubble and a Ponzi scheme. Here are some views from major politicians that have affected Bitcoin.
The 45th president of the United States has never been a supporter of the leading crypto, Bitcoin. Trump has stated that Bitcoin and other cryptocurrencies are not real money with very uncertain values.
He also argued that the use of cryptos very often involves breaking the law. During his time as president, the SEC took a more defensive approach toward crypto regulation.
However, quite a lot seems to have changed with the new administration. In January, President Biden suspended the multiple crypto regulatory proposals of the previous administration.
India’s popular finance minister was once the face of the “anti-crypto agenda,” announcing at her Ministry’s budget defense that the Government doesn’t consider cryptocurrency legal tender.
She also stated that there are plans by the Indian Government to eliminate the use of crypto-assets in financing illicit transactions. In furtherance of this, the Reserve Bank of India banned dealings in cryptocurrencies because of risk and volatility.
However, Nirmala Sitharaman has swung to the other side, stating that the Government would give people an “adequate window to experiment on blockchain, Bitcoin and other cryptocurrencies in India.” She added that the Ministry would not shut off all crypto options.
On the Flipside
- Financial giants JPMorgan Chase have hinted at a possible involvement in Bitcoin.
- The investment firm noted that investors could add up to 1% of their allocation to cryptocurrencies in order to achieve any efficiency.
- The likes of Tesla, BNY Mellon, Mastercard, and Grayscale have taken calculated steps to invest in Bitcoin and other crypto-currencies.
Janet Yellen, the American economist who holds the position of Secretary of the Treasury, is a well-known Bitcoin critic. Yellen has been skeptical about Bitcoin, referring to it as an “inefficient way” to conduct financial transactions.
In addition to this, she has stressed that Bitcoin is used for illicit financial transactions. This issue of hidden, shady, and untraceable transactions is also a concern for finance regulatory bodies around the world.
Yellen has also commented on the volatility of Bitcoin, arguing that “Bitcoin is a highly speculative asset.” Her influence as the Secretary of the Treasury could affect the regulation of cryptos in the United States.
China’s leader is among the top world politicians to have affected Bitcoin, albeit not directly. Xi Jinping favored the underlying blockchain technology over Bitcoin, which led to the ban of the asset.
China’s clampdown on crypto was really deep as it shut down its local trading platforms. Xi Jinping’s reason for clamping down on crypto is connected to the People’s Bank of China’s plans to roll out its virtual currency.
He noted that China ought to seize the opportunity and become the leading powerhouse in cryptocurrency. Following his speech, the fortunes of Bitcoin turned around, with its price soaring just after the proclamation.