At the very moment, when some of the greatest developments in financial technology are about to take off, a change in government in Washington DC is emerging, and it will either be a revolution for the American economy or a complete disaster. It all depends on who is appointed by Joe Biden and who is confirmed by the Senate in critical governance roles.
The breakthrough in question, Blockchain technology, has progressed from a conceptual idea to a financial instrument that provides real economic strategies that could revolutionize how they allocate wealth.
What is blockchain you ask? By using decentralization and cryptographic hashing, Blockchain allows the history of every digital object unchangeable and transparent. It’s a platform that is highly exciting and innovative because it helps minimize risk, weeds out theft and offers clarity for various uses in a scalable manner.
American technology innovators have successfully integrated a thriving market that uses digital assets and open ledgers to create goods that minimize prices, improve productivity, and bring greater openness for customers and companies alike. Cryptocurrencies have undeniably proved to be realistic devices for American users with immense usefulness in their economy.
Yet, while the American tech industry has assumed all of the innovation, spending, and risk, the U.S. government has overlooked and underestimated the need for a regulatory system that will sustain it here in America. When you consider the most innovative technical economy to the rest of the world, this dated regulatory approach to Fintech is somewhat underwhelming for many.
Although countries such as China and Singapore are taking serious measures to incorporate digital currencies into their regulatory framework, the U.S. is faced with a coin scarcity, complexities of stimulus regulation, and according to some, a basic lack of comprehension about what a cryptocurrency is even on Capitol Hill.
As a result, nations such as Malta and the United Arab Emirates attract American technologists because they were able to build structures.
The more time America spends on promoting the production of digital currencies, the more they could fall down the ladder of the global economy as a result.
Yet while Joe Biden has offered no insight into what his thoughts on cryptocurrencies are, the concern for many is that the US would elect a new Securities and Exchange Commission (SEC) chair committed only to enforcement instead of recognizing the need to concurrently foster innovation.