America’s Economic Freedom Slips: Crypto Industry Raises Concerns
The United States, often referred to as the land of liberty, faces limitations in terms of global economic freedom rankings.
This decline in rankings has caught the attention of industry leaders and analysts in the cryptocurrency sector.
On June 26, Brian Armstrong, the CEO of Coinbase, referenced a recent report highlighting the decrease in economic freedom within the United States. Armstrong emphasized the significance of economic freedom as a measure of a country’s potential for growth and prosperity.
A report from Reason magazine on June 21 revealed that the United States now ranks 25th in the world for economic freedom, a notable drop from its previous position as the fourth-ranked nation according to data from the Heritage Foundation. The foundation evaluates economic freedom based on factors such as the rule of law, regulatory efficiency, open markets, and fiscal health.
The primary reason for the decline in U.S. rankings, as highlighted in the report, is the excessive spending by Congress, resulting in a fiscal deficit that surpasses the revenue generated through taxes.
Derrick Morgan from the Heritage Foundation emphasized the importance of government economic policies for leading a prosperous life. He further explained that increased spending leads to inflation, which subsequently reduces financial freedom. Although the U.S. inflation rate remains high at 4%, it has decreased from over 9% compared to the same period last year.
Additionally, the report noted that American policymakers impose numerous regulations, many of which restrict individual freedoms. Despite the decline, being ranked 25th is not entirely unfavorable, considering the severe economic restrictions faced by countries like Sudan, Venezuela, Cuba, and North Korea.
READ MORE: Russian Unrest: Minor Impact on Markets, Gold and Oil Prices Show Resilience
Financial regulators in the United States are actively trying to suppress the cryptocurrency industry. Some observers believe this effort aims to allow Wall Street backers to control the industry. Moreover, restricting access to this new asset class for retail traders does not contribute positively to America’s economic freedom status.
In terms of economic freedom, Singapore holds the top position, followed by honorable mentions for Taiwan, Ireland, and Switzerland. Commenting on Singapore’s rise to economic superiority, Armstrong acknowledged their remarkable achievements in most measured dimensions. However, he expressed concern about their decision to limit retail crypto trading, considering it short-sighted and an infringement on freedom.
Economic freedom remains an important measure of every country’s potential for growth and prosperity. And increasing economic freedom is Coinbase’s mission.
The U.S. unfortunately has fallen in economic freedom rankings over the years https://t.co/G8wjLfwtoM
HT @FEhrsam
— Brian Armstrong 🛡️ (@brian_armstrong) June 26, 2023
Singapore has recently become an attractive destination for several prominent American cryptocurrency and fintech companies. Ripple, Circle (the issuer of a stablecoin), and Coinbase have obtained payment licenses to operate in Singapore. Coinbase also received its Singapore license from the central bank in October 2022.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
