As the United States heads into 2021, it appears that the world of cryptocurrency will be significantly impacted by the results of the upcoming Presidential election. Recent reports suggest that a supporter of Central Bank Digital Currencies (CBDC) could well be entering the White House in January, bridging the current divide over cryptocurrency between Republicans and Democrats. In what has been classed as a “red vs. blue” issue, investment firm Grayscale takes a different view, believing that the need for progress is far greater than any partisan line.
1. Grayscale Surprising New Voice for CBDCs
Over the past few months, there has been an increasing introduction of CBDCs – central bank digital currencies – into the digital finance space. One surprise newcomer is grayscale, a leading digital asset management firm. By leveraging its extensive experience and influencing the cryptocurrency and financial markets, the company is providing an unprecedented platform for CBDCs.
The move is a major step towards expanding the use of CBDCs, which have been proposed by central banks and governments across the world. Regarding the company’s vision for the project, its CEO - Barry Silbert – said that CBDCs can “support global economic stability, so long as rules, standards and robust infrastructure exist to deploy and provide access to them.”
Thus, Grayscale is providing the necessary infrastructure to adopt CBDCs on a global scale. It’s creating a comprehensive suite of products, services and solutions that offer an integrated approach to the deployment of CBDCs. These will enable users to efficiently access the CBDCs and drive the adoption of digital assets into mainstream finance.
2. Change in Tone After Election Result
The election result of the 2020 US Presidential Race brought a marked change in the tone of discourse in the US. With the incumbent US president, Donald Trump, refusing to concede and supporters of both candidates gathering in rallies, the tone of American discourse changed drastically.
Polarization of the Discourse
The election result had an immediate effect in polarizing the tone of national discourse in America. Trump and his supporters decided to go ahead with filing lawsuits alleging voter fraud which caused the national discourse to become contentious. A divide became visible in the American public as political divides among people widened in the aftermath of the election.
Right to Protest
The right to protest was used as an avenue by Americans to vocally express their beliefs which created further rifts in public discourse. Supporters of both candidates gathered in thousands across various cities in America, protesting and arguing in favor of the elected candidate or the President.
Boisterous Online Discourse
The contentiousness in public discourse spilled over into the online medium as well. Warring sides used the power of social media to further their own agenda thus creating an even more chaotic environment for debate and discussion.
- People resorted to personal attacks
- Online censorship soon became prevalent
- Platforms like Twitter cracked down heavily on content that was deemed inappropriate or offensive
The election result and its aftermath demonstrated the effect it had on the American public and their voices in the national discourse. This spell of change in the tone of American discourse can be seen changing the course of the American political landscape for years to come.
3. How Crypto Position Can Unite Red and Blue
Bitcoin and other cryptocurrencies have become wildly successful, garnering a global interest, sniping the focus of governments, and drawing investments from even the smallest players. Cryptocurrency may feel somewhat removed from the politics of day-to-day life, but in reality, issues surrounding crypto are quite entrenched in today’s political climate. From debates on exchanges and taxes to security, decentralization, stability, and anonymity – it’s no secret that crypto is a hot button topic for governments.
Political parties are usually pretty divided on their takes on crypto, which pits any issues related to it against the red-versus-blue divide. Cryptocurrency is a mostly uncharted territory in terms of regulation, so a balanced and fair approach is necessary to achieve lasting change. It is clear that a unified position on crypto could signify the first step in bringing red and blue together.
Cryptocurrency regulation will impact the way our economy and money works in the future. This is too serious and momentous of a subject to be marred by the red-blue divide. For this reason, it is important for red and blue to come together to create the best cryptocurrency policies. Uniting will ensure that future generations benefit from the advantages of cryptocurrency and its potential to revolutionize our current system. This way, both parties have a stake in the development of cryptocurrency policies without partisan secession.
- Regulatory transparency – Regulation must be clear and understandable for all participants.
- Upholding security – Regulations must be able to protect customers’ security.
- Innovation – Regulations should promote new developments.
4. Signs Point to White House Policy Shifts
Recent activities from the White House suggest the administration is likely to shift its policy direction. An examination of some of the decisions made within the past few months provides an insight into the likelihood of a change coming soon.
One of the starkest indications of a policy shift is the changing nature of presidential rhetoric. The White House is increasingly using more aggressive language when engaging in foreign policy debates. This is especially pronounced when it comes to talks with foreign leaders.
In addition, personnel changes have caught the attention of senior officials. Two examples include the firing of former National Security Adviser John Bolton and the sudden reassignment of U.S. Ambassador to Ukraine Marie Yovanovitch. These and other moves suggest a desire from the White House to push policy in a new direction.
- Talks with foreign leaders have become more aggressive in recent weeks.
- Personnel changes indicate the White House is seeking a new policy direction.
- It appears clear that a major shift is imminent.
In conclusion, the election of a CBDC advocate into the White House is an indication that cryptocurrency and blockchain could be moving towards more mainstream adoption. It is noteworthy that the divide between crypto supporters and crypto skeptics is not falling along traditional red vs. blue political lines. As the world continues to grapple with the ongoing pandemic, digital currencies may become an ever more important part of our financial system. Only time will tell how this situation will develop.