Why The US Government Has Started Turning Positive Towards Bitcoin
For a very long time. The private sector has played the lead in publicizing Bitcoin use and adoption in the United States. The formal US government has been found wanting in this regard.
Many experts state that the US government should have played a leading role in engaging with the new technology and establishing the US once again as the global leader in innovations. However, the skeptical approach that the formal official institutions of the US government towards Bitcoin made it fall behind in the race.
This gave the opportunity to other countries of Europe as well as China who approached Bitcoin and crypto from a global economic and political standpoint.
In this article, we are going to dwell on why the last year has seen the US government soften its stance on Bitcoins. However, before we do that, let us first look at the historical relationship between the US administration and cryptocurrencies.
Why the US Government was skeptical towards Bitcoin?
It has been pointed out that the government authorities were outright in their rejection of the new tech. This means that even without exploring the merits of cryptocurrencies and Blockchain, the government was out to reject it as a nefarious activity.
This was unbecoming of a major global economic leader. Many of the leading names in the government saw Bitcoin as a threat to the US economy. Some even suggested that it is a ploy by dark anti-national forces to arrest the development of the country.
However, as more and more citizens in the country continue to invest in Bitcoins, the government has been forced in many ways to engage.
Even though the US government has legalized Bitcoins, but the ambiguous stance on Bitcoins by different authorities has made it difficult for the country to integrate Bitcoins into the economy for the benefit of the citizens.
What made the US Government change its attitude towards Bitcoin?
People who follow the crypto ecosystem are of the view that the recent appointment announcement of Brian Brooks shows the change. Brian Brooks has been appointed as the Comptroller of the Currency, a top banking and currency regulator top-job.
Brian Brooks has previously worked as a senior counsel to the billion-dollar crypto exchange, Coinbase. He has also been very public in his admiration of Bitcoin and the potential of Blockchain as a revolutionary new piece of technology.
Many are also of the opinion that Brian Brooks has been called upon to fast track the development of the Digital Dollar. This comes after China has already started beta testing its Digital Yuan both within its country as well as with some of its business vendors in Asia.
With Brooks now heading the 1200-odd banks in the USA, the Bitcoin ecosystem feels that there is a possibility of integrating the crypto into the economy.
What are some Challenges that Brian Brooks is likely to face?
Even though Brian Brooks has been appointed as the Comptroller of the Currency, he will not be able to single-handedly orchestrate the great move for Bitcoin. This is because there are multiple agencies and heads he will have to negotiate with.
This includes the Federal Reserve, the SEC, the IRS as well as the Presidency of the United States. Donald Trump has been vociferous in his categorization of Bitcoin, and bringing on board any reforms can be challenging.
Brooks will also have to deal with the US Congress, where some sections have called for a complete blanket ban on cryptocurrencies including Bitcoin.
The Final Word
Even though Brian Brooks faces an uphill task, many people see that a step has been made in the right direction. With a majority of Americans turning to Bitcoin trading through the financial peak platform, the US government will have to find a way to regulate Bitcoins and other cryptocurrencies positively in the US economy.