The US Department of Commerce is reviewing the Bitcoin Policy Institute’s report on cryptocurrencies
US President Joe Biden issued an order requiring the International Trade Administration to seek feedback from the public on digital assets and competitiveness in the United States.
As a direct result, the Bitcoin Policy Institute sent a paper to the US Department of Commerce on the subject of Digital Asset Competitiveness. The July 5 report discusses the ways in which an open monetary network can advance US interests.
The research first examines the implications for US goals of financial inclusion and consumer welfare, after which it highlights the most important and useful aspects that are exclusive to Bitcoin.
In addition, concerns about national security, energy consumption, Bitcoin mining and competitiveness were analyzed.
Financial inclusion
In terms of financial inclusion, Federal Reserve research estimates that 19% of Americans are either without a bank or a subbank, with higher rates “among lower-income adults, less educated adults and black and Hispanic adults.”
In order to process and settle payments and prevent fraud, a number of intermediaries are required for most digital transactions. As a consequence, the report notes that customers pay between 1.5% and 3.5% in credit card processing and brokerage fees.
“On the other hand, cryptocurrencies such as bitcoin offer significantly lower fees by eliminating the need for centralized intermediaries. We expect that continued innovation and expanded access to new payment protocols such as Lightning Network will not only reduce transaction costs for underbanked Americans, but will also put competitive pressure on traditional financial institutions. to lower the fees as well. “
To the extent that the United States’ competitiveness can benefit from domestic technological innovation, stock market value appreciation and as an attractive perspective for global talent.
The report highlighted:
“Bitcoin gives the United States a clear advantage over other economic blocs and resistance nations that reject or stifle adoption, especially as they pursue techno-authoritarian governance and monetary systems designed to facilitate social control rather than individual freedom.”
The security of Bitcoin
Furthermore, the paper submitted that the transparency of Bitcoin in itself provides lawful police authorities with significant tools to detect and track illegal behavior, which can lead to confiscation of ill-gotten wealth created by criminal organizations and ransomware operations.
Finally, the report discusses the controversy surrounding Proof-of-Work (PoW) mining, which it ultimately believes will “continue to be valued by the market, and in particular, the mining industry will continue to expand in the United States within a predictable and fair regulatory framework.”
It believes that Bitcoin may prove to be an important factor in accelerating the production of renewable energy, stabilizing our new, greener network and reducing methane emissions, while presenting innovative alternatives to heating systems powered by fossil energy. fuel.
