News from the US Treasury: cryptos are a risk!

The Department of the US Treasury has presented a strategy and other news for financial inclusion, proposing measures to increase access to financial services and excluding crypto, considered a risk rather than an inclusive opportunity.

Let’s see all the details in this article. 

Strategy of the US Treasury: news on financial inclusion, crypto remain excluded

The United States (USA) Department of the Treasury has recently published a detailed report on its national strategy for financial inclusion. 

That is, a document developed in response to a request from Congress and intended to improve access to safe financial products and services for citizens. 

This strategy, announced in a statement on October 29, aims to promote financial inclusion through a series of recommendations ranging from access to secure and affordable credit to the protection of consumers from predatory and illegal practices. 

Despite the scope of these measures, the document explicitly excludes criptovalute as a tool for financial inclusion, defining them as a risk for consumers.

According to the report, the Treasury Department has conducted studies on the risks associated with digital assets, believing that investments in criptovalute may endanger the financial security of U.S. citizens. 

Cryptocurrencies, particularly Bitcoin, are often considered an alternative financial tool for those with limited access to traditional banking systems. However, the Treasury believes that the risks of volatility and fraud outweigh the potential benefits for inclusion.

What does the financial inclusion strategy consist of?

The national strategy for financial inclusion of the Treasury focuses on four main objectives. 

That is to say, expanding access to secure and low-cost credit, improving transparency and availability of financial services, increasing the inclusivity of government financial products and, finally, protecting consumers from deceptive practices. 

In this context, Lael Brainard, national economic advisor, praised Vice President Kamala Harris for her commitment to expanding access to credit and capital. Thus giving special recognition to her leadership on these issues.

In any case, the exclusion of cryptocurrencies from this strategy has sparked mixed reactions. Many supporters of blockchain technology see in Bitcoin and other cryptocurrencies a solution to improve financial access for disadvantaged communities. 

These supporters emphasize how digital assets can offer an alternative for those who are unable to use traditional banking services. 

However, the Treasury maintains a cautious approach, emphasizing that accessibility must not jeopardize the financial security of citizens. 

The report highlights the potential risks of fraud and volatility as the main reasons why cryptocurrencies have not been included in the strategy.

US Elections: how could they influence the crypto situation?

The policy towards cryptocurrencies could evolve in view of the upcoming US elections, where the outcomes could influence significantly the future decisions of the government regarding the digital asset industry. 

Kamala Harris, current vice president and Democratic candidate, has expressed support for responsible innovation in the sector, while maintaining a cautious position regarding the need for consumer protection. 

If Harris were to win the November elections against the Republican Donald Trump, her administration might consider a balanced approach. One that aims to promote innovation without compromising consumer safety.

In line with the cautious view on the inclusion of cryptocurrencies, the administration of President Joe Biden has already issued an executive order establishing a framework for the regulation of digital assets. 

This order urges government departments, including the Treasury, to assess the impact of cryptocurrencies on various areas, such as consumer protection, financial stability, and the fight against illicit activities. 

The Treasury, consequently, has developed guidelines to regulate the use of cryptocurrencies in accordance with the presidential order. This is in order to protect both the national economy and the savers.

In conclusion, the choice of the US Treasury to exclude digital assets, while on one hand protects from potential risks, could limit the opportunities for financial inclusion. 

In particular for those segments of the population that find in decentralized services a way to access the financial system. 

With the upcoming elections, the future of cryptocurrencies and their potential inclusion in financial inclusion plans may hold further developments, depending on the political leadership that will guide the country in the years to come.