Crypto Has The Potential For Undermining the US Dollar And Destabilizing Nations, Says Hillary Clinton
Hillary Clinton says cryptocurrencies have the power to weaken fiat currencies and eventually entire countries.
During a panel discussion at the Bloomberg New Economy Forum on Friday in Singapore, the former Democratic presidential candidate said the governments around the world are facing new challenges in terms of artificial intelligence, disinformation, and crypto.
“One more area that I hope nation-states start paying greater attention to is the rise of cryptocurrency—because what looks like a very interesting and somewhat exotic effort to literally mine new coins in order to trade with them has the potential for undermining currencies, for undermining the role of the dollar as the reserve currency, for destabilizing nations, perhaps starting with small ones but going much larger.”
The former Secretary of State further said that there’s now a whole new layer of activity that “could be extremely destabilizing.” If this goes in the wrong hands, this could also be “direct threats to many of our nation states and certainly to the global currency markets,” she added.
In other news, the New York Fed President John Williams said the rapid development in the crypto space and stablecoins could provide opportunities for positive effects. But at the same time, it can be a risk to financial stability, and cyber risks to the financial system are not going away, he added.
The Fed officially also tilted toward the hawkish side; he talked about seeing broader-based increases in inflation, making it more expensive to put food on the table.
“There are segments of the labor force that are more protected against inflation and others less so,” said Williams, noting people on fixed incomes are particularly less protected against inflation.