During a panel discussion, Hillary Clinton warned of the dangers of cryptocurrencies for the stability of nation states. Meanwhile, the developments in Turkey show that Bitcoin and Co. can help citizens to do the opposite in the current inflationary environment.
The popularity of cryptocurrencies has grown enormously over the past few years. More and more investors are taking the plunge into the crypto space, forcing governments around the world to deal with the issue. The states that welcome Bitcoin and Co. like El Salvador are in turn opposed to political representatives who are more than critical of developments in the sector. One of them is Hillary Clinton.
The former US Democratic presidential candidate said on Friday on the Bloomberg New Economy Forum in Singapore raised their concerns about cryptocurrencies. These have the “potential [Fiat]- Undermine currencies and in particular the role of the US dollar ”. Clinton also attributes digital assets to be able to destabilize entire states and advises governments to pay more attention to this “growing problem”. However, the former Secretary of State remained silent about the high inflation rate in the United States.
Current events in Turkey prove that cryptocurrencies are not even needed to destabilize states. After the country’s central bank cut the key interest rate by one percentage point, the exchange rate of the Turkish lira against the US dollar is at a new record low. It is the third time this year that the Turkish monetary authority has decided to take such a step. Added to this is an inflation rate of 20 percent.
Bitcoin could help here, says MicroStrategy– CEO Michael Saylor in a tweet.
The adoption of cryptocurrencies could “undo the damage done and revive the economy,” said the 56-year-old.
Turkish government remains critical of cryptocurrencies
Indeed, Turkey’s monetary policy fueled the acceptance of cryptocurrencies. This was shown by a study by the Turkish crypto exchange Paribu in July of this year. The number of users has increased by a factor of two compared to the previous year. A thorn in the side of the Turkish government. For example, President Erdoğan declared war on cryptocurrencies in September. The new asset class will never be supported. Rather, the company relied on its own digital central bank solution.