Hillary Clinton, the former U.S. Secretary of State, recently shared her concerns that bitcoin could possibly have adverse effects on the current fiat monetary system, during a panel discussion at the Bloomberg New Economics Forum held in Singapore.
According to Clinton, the growing prominence of bitcoin may undermine the position of the U.S. dollar as a reserve currency, weakening its stance and power. Furthermore, she cautioned that mining and trading bitcoin may seem thrilling and unique, but it has the potential to jeopardize the stability of smaller and even larger nations.
As a former first lady and Secretary of State during Obama’s presidency, Clinton emphasized that it is important that nations pay close attention to the emergence of bitcoin and evaluate its impact on their respective economies. She called for the implementation of stronger regulations to withstand any detrimental effects that bitcoin might have on the current financial system’s stability.
As governments start to feel threatened by the power of bitcoin and its ability to disrupt their monopoly over the economy and the seigniorage, several governments such as China and Russia have adopted a strict stance by prohibiting bitcoin mining and trading altogether. Other nations have chosen to introduce tight regulations against Bitcoin.
In the meantime, smaller countries like El Salvador have adopted bitcoin as their monetary standard, and have welcomed it with open arms.
Donald Trump, the former President of the United States, also conveyed comparable worries about the implications of bitcoin on the U.S. dollar’s dominance as a reserve currency. He urged for stricter regulations to safeguard the dollar’s significance and superiority.