Former Secretary of State, Hillary Clinton, recently expressed her concern over the use of cryptocurrency and the potential it has to disrupt the standard dollar system and destabilize nation states.

Undermining the Dollar

Clinton warned that cryptocurrency could “undermine the Dollar”, stirring concern that other countries may then decide to switch to other currencies, potentially leading to liquidity issues in the US and which could have a dangerous impact on American citizens who rely on a stable currency.

While Clinton claims she isn’t against the idea of cryptocurrency and recognizes its potential, she thinks the governments must regulate it in order to protect the general public.

How Could Cryptocurrencies Disrupt Nation States?

Clinton also suggested that cryptocurrency could destabilize nation states and that it could be used as a way to “facilitate criminal activities, evade taxes and launder money”.

She proposed that a multi-lateral governance plan is needed to regulate cryptocurrency and establish a framework to make sure the digital currency is being used responsibly and that citizens are protected from it being misused.

Here are some of the concerns that Clinton listed for cryptocurrency:

  • Money laundering: Cryptocurrencies have the potential to be used for money laundering and tax evasion.
  • Financial disruption: Cryptocurrencies could disrupt the financial system by undermining or replacing the standard currencies.
  • Security: Cryptocurrencies are vulnerable to hacking or fraud.
  • Market volatility: Cryptocurrency prices can be very volatile, making them an unstable investment.

Conclusion

Clinton’s comments highlight the need for governments to take responsibility for regulating cryptocurrency markets, and for citizens to take caution when investing into such markets. While cryptocurrency has the potential to revolutionize the way people handle money, it is important to note the risks involved and the need for governments to ensure it is used safely.