Re:Lebanese turn to cryptocurrency as economy tanks
by JumpCrisscross on Thursday March 31, 2022 @02:16PM
(#30870489)
> while the US government sees bitcoin as a threat to their currency monopoly, they also see it as more of a threat to other smaller countries with weaker economies
Bitcoin is no threat to the U.S. We have an open capital account. If Congress made Bitcoin legal tender tomorrow virtually nothing would change overnight. (Hell, if Congress abolished the Fed tomorrow and switched to exclusively Bitcoin, we'd just have to dust off old central banking books from the specie days. We'd also enter a deflationary recession.)
For a capital controlled country, on the other hand, cryptos enable currency flight. Hence the lockdowns in China, Russia and India.
Bitcoin is no threat to the U.S. We have an open capital account. If Congress made Bitcoin legal tender tomorrow virtually nothing would change overnight. (Hell, if Congress abolished the Fed tomorrow and switched to exclusively Bitcoin, we'd just have to dust off old central banking books from the specie days. We'd also enter a deflationary recession.)
For a capital controlled country, on the other hand, cryptos enable currency flight. Hence the lockdowns in China, Russia and India.