Since the government of Donald Trump, and even before, the United States government has expressed its willingness to take control of the cryptocurrency market to regularize it, and probably influence it so that it responds to its interests, in a desperate attempt to take away the role of cryptocurrencies. China. With the Biden government and its less hostile policy towards the Asian country, this issue had not been mentioned again as insistently as in the previous government. However, now with heated tempers, with clear challenges to the proud dictatorial government of Xi Yi Ping, the issue has resurfaced, expressing the need to create a central bank for cryptocurrencies that respond to financial institutions in the United States.
As always, there are detractors and those who speak in favor of this movement, alleging the “dangers” and volatility of crypto assets, even though, using analysis techniques and indicators such as the Ichimoku cloud, the chances of obtaining favorable operations grow quite a bit. In any case, this project must be thoroughly studied by the Federal Reserve, to which Biden, in addition to studying the possibility of creating a cryptocurrency backed by the largest entity in US monetary policy.
The Creation of an American National Cryptocurrency
In any case, despite expressing his “concern”, the president also ordered that the possibility of creating a national cryptocurrency be studied, as several countries have already done, mainly those that have great economic problems, which has had different results, not always favorable for the country in question, but rather for the political sector. At the moment, the details and interests behind this possible new American cryptocurrency are not known, nor how it can be accessed.
What the United States government wants with the creation of an axis that controls cryptocurrencies is a titanic task that could end the current concept of cryptocurrencies. In any case, an operation of this type would have an extremely high cost and would require agreements with companies around the world, many of which would not be willing to accept the regulation of the US government, since it goes against their interests.
A central bank for cryptocurrencies. Is it possible?
The concept and idea under which cryptocurrencies were created at first, was precisely to avoid central banks and the hegemony of the banking system, creating assets that could be naturally generated from computers and that responded only to the law. of supply and demand. This is what bases the functioning of the value system of cryptocurrencies such as Bitcoin, and others, such as Ether, are based more on technological innovation, as well as on the uses that can be given to their blockchain.
Other cryptocurrencies are directly dependent on the value of others and most of them respond to the trend set by Bitcoin. Creating a central bank for cryptocurrencies involves a process that the Biden administration, and probably no US politician, understands: mining should be stopped and the entire process centralized, which would destroy the value of cryptocurrencies and would leave to be called cryptocurrencies since the entire cryptographic system would have to collapse. That is why, as a concept, a central bank for cryptocurrencies is nothing more than an absurd concept.