Bitcoin vs CBDC: US Government Takes Sides in Economic Report
US President Joe Biden recently released the government's economic report, which contains several critiques of Bitcoin.
The report argues that BTC does not meet the characteristics of a unit of account, a medium of exchange, or a store of value, citing factors such as high volatility, lack of widespread acceptance, and energy consumption.
The report also suggests that a CBDC could provide benefits such as better alignment with human rights, democratic values, and privacy.
However, some cryptocurrency community members have criticized the report, pointing out that Bitcoin’s value has risen significantly against the US dollar and that the US banking crisis and high inflation have eroded faith in traditional financial institutions.
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Moreover, some advocates of BTC mining have challenged the report’s claims about energy consumption, arguing that not all crypto mining operations consume the same amounts of power.
Despite the criticisms, the report highlights the US government’s interest in digital currencies and their potential economic impact. As of press time, the BTC price stood at $28,350, reflecting ongoing market volatility and uncertainty.