Hillary Clinton says cryptocurrencies could weaken entire countries. Australia's financial services minister: "Bitcoin is not a fad and has captured the hearts of Australians."
Cryptocurrencies have the power to weaken all other currencies, Hillary Clinton believes.
Hillary Clinton expressed her fears about the impact of cryptocurrencies on every country's economy.
Australian Finance Minister, on the contrary, says govs must recognize crypto.
Former U.S. presidential candidate Hillary Clinton stated that cryptocurrencies could destabilize countries large and small. Due to their growth, she pointed out that a strong crypto asset like bitcoin could even destroy the dollar as the world's reserve currency of value.
She commented at the New Economic Forum organized by Bloomberg Media Group in Singapore. During her participation, Hillary Clinton expressed that governments should be on alert about the rise of cryptocurrencies, as they could banish their national currencies.
The former candidate, who belongs to the Democratic Party, pointed out that countries with weak currencies and economies will be affected first. However, she assures that they will not be the only ones. She believes that this is an issue of global concern, as she considers that the crypto ecosystem could destabilize solid nations such as the United States.
On the one hand, fear is born by the increased adoption of cryptocurrencies. An example of this is the decision of several U.S. presidents to collect their salary in bitcoin. And, on the other hand, it is attributed to the weakening of the dollar after inflation, something that even worries Elon Musk, as he said on Twitter.
Not everyone thinks like Clinton on Bitcoin
Alex McShane, a bitcoin journalist, called Hillary Clinton's statement a "pretty vague threat to nations and multinational corporations." As a bitcoin insider, he said that many politicians lack knowledge about cryptocurrency.
McShane denied that cryptocurrencies could undermine fiat currencies or entire countries because they function equally in the economy. Although he admits that bitcoin is disrupting the dollar as a global reserve currency, he understands that raising taxes and encouraging devaluation is a threat.
Gael Sanchez Smith also sees empowerment in bitcoin, who believes that we will begin to think about the values of things in this cryptocurrency. The analyst stated that it is a matter of time before we all migrate to this new unit of value and become a big part of the world's fortune.
Australian Finance Minister recognizes Bitcoin's potential
Australian senator and minister Jane Hume believes cryptocurrencies will eventually emerge as a mainstream technology. She compares them to the Internet in its early days.
Positions favorable to cryptocurrencies, especially from authorities related to economics and finance, are always welcome. On this occasion, Australia's Minister for Financial Services, Pensions and the Digital Economy and Senator Jane Hume publicly endorsed digital assets saying they are not just a temporary trend. When referring to Bitcoin and cryptocurrencies, she said that we need to recognize that this is not a fad.
Government must recognize crypto adoption.
Hume responded to Tony Richards (Head of Payments at the Reserve Bank of Australia), who recently described cryptocurrencies as "faddish." Furthermore, Richards warned investors that the asset class has the potential to collapse and, therefore, people could lose a substantial amount of money.
Meanwhile, in an interview for Australian Financial Review, Hume disagreed with the statement. She believes that the cryptocurrency industry is a sensitive area, which the local government should approach "cautiously, but without fear." In this regard, she stressed that Australia's governing body should also refrain from viewing Bitcoin and altcoins as a fad.
The official added that cryptocurrencies have emerged over the years and have "captured the hearts and minds" of Australians. A Survey announced that approximately one in five Australians is a crypto holder. At the same time, Bitcoin (BTC), Ether (ETH), and Dogecoin (DOGE) are the most popular digital assets.
Jane Hume and DeFi
Hume also touched on the Blockchain-based form of finance that does not rely on central monetary intermediaries: decentralized finance (DeFi). She predicted that it would "present incredible opportunities" in the future and, as such, "Australia should not be left behind far from the unknown."
Comparison with the Internet
She also compared the cryptocurrency industry to technological developments of the recent past once considered irrelevant, such as the iPhone or Excel. Digital assets also resemble the Internet in its infancy and may one day become a mainstream technology used by everyone, Hume expressed:
"Don't be the person in 1995 who said the Internet was just a place for geeks and criminals and would never become mainstream. And don't be the person who argued that e-mail was a fad."
Many experts see the volatile nature of the asset class as its main problem. Hume opined that the most significant price fluctuations occur because the industry is still in its early stages of existence. Hume says that all innovation starts as disruption and ends as a household name.
It is important to note that this is not the first time Hume has defended cryptocurrencies. He had already said the exact words back in May: that crypto was not a fad and that the government would not stand in the way of their development.