Will Bitcoin’s Woes Persist in the U.S.? Brainard to Head National Economic Council

Sahana Kiran
Source – Blockchain News

Bitcoin [BTC] and the cryptocurrency industry, in general, have had a tough time, particularly in the United States. Uncertain regulations in the region have made it rather challenging for these assets to survive. Despite being one of the most powerful countries in the world, cryptocurrencies are crumbling in the U.S. It looks like the industry could be enduring a few more hardships in the region.

Earlier today, President Joe Biden named Lael Brainard as his top economic advisor. Brainard has been serving as the United States Federal Reserve Board Vice Chair and her current role as the director of the National Economic Council would make her the face of the U.S. economy. Through this transition, Brainard would reportedly advise Biden’s administration on multibillion-dollar economic agenda. This includes the Bipartisan Infrastructure Law and the CHIPS and Science Act which are pertinent in the country.

The cryptocurrency community wasn’t very happy about this change. This was mostly because “Brainard hates Bitcoin.” Right after this news broke out, several in the industry pointed out how this could be detrimental to the digital asset sector.

Last year, Brainard listed out the possible perils of the crypto-verse. Along with this, she implied that the market should be regulated before it looms as a threat to the financial system. She previously stated,

“Despite significant investor losses, the crypto financial system does not yet appear to be so large or so interconnected with the traditional financial system as to pose a systemic risk. This is the right time to establish which crypto activities are permissible for regulated entities and under what constraints so that spillovers to the core financial system remain well contained.”

She repeated the same thing during a speech in London last July.

Will the Digital Dollar sideline Bitcoin?

Despite her distaste towards Bitcoin, Brainard has been a proponent of the Digital Dollar or the U.S. CBDC. Time and again, she has put forth the benefits of rolling out CBDC. She noted how the launch of the Digital Dollar could bring about “a safe central bank liability in the digital financial ecosystem, much like cash currently coexists with commercial bank money.”

Brainard also highlighted the possibility of CBDC co-existing with stablecoins. Through her new position, she might push the government in developing the Digital Dollar.