The Bitcoin Czar, Treasury Secretary Steve Mnuchin, is suggesting that down the road, the US dollar could be converted to a digital dollar.
This might seem like great news to some of you, but to those of us who understand the ramifications of a centralized digital currency (still based off of fiat), we can see the police-state-empowering dangers of a digital currency.
A state that can successfully create a digital currency is a state that can even more thoroughly control the monetary system. This state can much more easily create currency from the air and then remove digital currency from circulation, enabling it to artificially create inflation or deflation.
The other, perhaps more dangerous, power that it grants a state is the ability to track your transactions and, if you fall into a dissident category, instantly remove you from accessing that monetary system.
The United States, through its Treasury Secretary Steve Mnuchin, has declared that they are closely watching the digital currency ecosystem and could turn the US dollar into a cryptocurrency in the distant future.
According to Express, Steve Mnuchin has said that in line with the recent popularity of bitcoin, the Treasury had made proposals of converting the US fiat currency into a “digital dollar.”
However, the high-ranking official hinted that the project might not be undertaken any time soon because the government is still wary of the cryptocurrency mania. Mr. Mnuchin also opined that what matters most to him at the moment is to ensure “bad people cannot use these currencies to do bad things.”
He talked about the need for consumers to fully understand that digital assets are very volatile and thus it may be easy for them to find financial difficulties. He said: “I want to be sure consumers trading this understand the risks. I’m concerned consumers could get hurt.”
Steve Mnuchin has called for an urgent G20 summit concerning cryptocurrencies, to avoid bitcoin being used like “Swiss numbered bank accounts.” He also pointed out that despite the decentralized nature of Bitcoin and cryptocurrencies, the US government is currently investigating how to track bitcoin activities.