US Department of Commerce reviews Bitcoin Policy Institute’s report on the benefits of crypto
US President Joe Biden has issued an executive order requiring the International Trade Administration to seek public comment on digital assets and competitiveness in the United States.
As a direct result of this, the Bitcoin Policy Institute submitted a paper to the United States Department of Commerce on the topic of digital asset competitiveness. The report published on July 5 examines the ways in which an open monetary network can advance American interests.
The research first examines the implications for US financial inclusion and consumer welfare goals, after which it highlights the most important and useful aspects that are unique to Bitcoin.
Additionally, concerns regarding national security, energy consumption, Bitcoin mining, and competitiveness were analyzed.
Regarding financial inclusion The research of the Federal Reserve estimates that 19% of Americans are either unbanked or underbanked, with higher rates “among low-income adults, less-educated adults, and black and Hispanic adults.”
To process and settle payments and prevent fraud, a multitude of intermediaries are required for the majority of digital transactions. As a result, the report notes that customers pay between 1.5% and 3.5% in credit card processing fees and interchange fees.
“In contrast, cryptocurrencies like bitcoin offer significantly lower fees by removing the need for centralized intermediaries. We anticipate that continued innovation and expanded access to emerging payment protocols like the Lightning Network will not only reduce transaction costs for underbanked Americans, but will also put competitive pressure on traditional financial institutions to lower fees as well.
To the extent that US competitiveness should benefit from domestic technological innovation, stock market appreciation, and an attractive prospect for global talent.
The report highlighted:
“Bitcoin gives the United States a distinct advantage over other economic blocs and opposing nations that reject or stifle its adoption, especially as it pursues techno-authoritarian governance and monetary systems designed to facilitate social control rather than individual freedom.
Furthermore, the submitted document stated that the opening of Bitcoin itself provides law enforcement officials with important tools to detect and trace illegal behavior, which can lead to the confiscation of ill-gotten wealth made by criminal organizations and ransomware operations.
Finally, the report discusses the controversy surrounding Proof-of-Work (PoW) mining which it says will “continue to be appreciated by the market, and in particular, the mining industry will continue to grow in the States. together in a predictable and equitable framework”. regulatory framework “.
She sees Bitcoin as an important factor in accelerating renewable energy generation, stabilizing our new, greener grid, and reducing methane emissions, while showcasing innovative alternatives to heating systems. powered by fossil fuels. fuels.