Apart from El Salvador looking into legalizing cryptocurrency payments in economic stances, there are a few more countries also looking to add cryptocurrencies to their way of life. One of those countries is the United States of America.- Key US Politician
While the government has not come out to acknowledge cryptocurrencies as an accepted means of value exchange, some states have already taken steps to cryptocurrency adoption.
It is no longer news that the New York City Mayor, Eric Adams, converted his salary into cryptocurrency. Since Adams announced in November 2021, it was only a matter of ‘when’, and it seems we have seen the bold decision come to life, with more expectation being placed on his subsequent wages being in cryptocurrencies.
Although his reason for making this choice was not explicitly said, it can be denoted that top government members are taking an interest in cryptocurrency.
If this is the case, how long will it be before the federal government legalizes cryptocurrency daily transactions? The right answer to this question will depend on a number of factors, including the government’s willingness to replace or complement fiat currencies. This topic has sparked debate among many people for a variety of reasons, which are discussed further in this article.
The NYC mayor did not give a personal reason backing his choice but mentioned his interest in York city’s technology growth. It is high time the world implemented crypto technology to improve society’s economy and create more job opportunities.
His action acts as a reminder towards the Gen Y and GenZ generations of New York’s support for technology adoption. The mayor’s decision has also influenced the response of top technology companies in terms of increasing the rate of innovation.
Reasons for Other Governments not Taking Crypto-Based Actions.- Key US Politician
New York is one of the centers of the world’s economy and quickly adapts to innovations. In decades to come, more innovations will be put in place, and only the smart government will enjoy the benefits to the maximum. Why are some countries behind the digital currency trend if such is the case?
Firstly, the fear of high volatility causing economic instability is high among non-crypto-friendly countries. As mentioned above, Bitcoin and Ethereum have unstable prices, unlike the usual traditional banking method. Hence, countries like the United States are skeptical about when to convert digital currency to their legal tender.
When people receive their first paycheck in cryptocurrency, it gladdens the heart, and they would love to continue with the payment method. However, it undermines government or financial institutions’ authority of cash flow. Cryptocurrencies remove intermediaries, as all transactions are performed and recorded on blockchain technology. While the government completely controls fiat currencies, it is not so with modern financial innovation.
The U.S financial transactions depend on the Federal Reserve, which is in charge of money production, borrowing and lending operations. As far as consumers are concerned, the parties who serve as intermediaries are usually ahead of the receiving party. The public is the receiving party, whereas an individual cannot dictate the mass production of money.
The U.S central bank, for instance, produces its digital assets but cannot entirely depend on Bitcoin and other altcoins assets without solid backup. These banks set policies that affect the whole society concerning money regulations. A certain percentage of revenue goes to the government in this case.
However, some countries have realized the added advantage of accepting digital revenue. Since digital currencies are decentralized and non-traceable, tracking a citizen’s income rate is almost impossible. Tax payments cannot be guaranteed, so some countries allow citizens to pay taxes as cryptocurrencies.
Non-traceable coins have been a central issue for governments regarding using them for illegal transactions. Dealers pay for drugs or other illicit substances, while law enforcement cannot access the transaction history or details. To ensure the genuine reason for this financial innovation, there is a need to improvise control measures for illegal activities. Talking about legal uses of cryptocurrencies, you can start staking your Eth tokens for passive returns on https://redot.com/eth2/
Technicians and Influencers Responses to the Limitations of Widespread Crypto Adoption- Key US Politician
Many cryptocurrencies are competing against the first coin, which is Bitcoin. Many more competitions will be produced in the future, but how do developers increase people’s interest in digital currency? Financial innovation is the most applicable answer to this question. Technicians realize the need to keep proposing a value, even in digital assets, and having Ethereum take the bold step in offering better value than traditional banks will definately be amplified onc the ETH2 is live. You can see details on the ETH2 on the ETH explorer.
Many people recognize the drawbacks of transitional banking and prefer to trade currencies on digital platforms. Hence, developers need to assure users that they have made the right choice—an example of a digital platform that keeps building a community with its smart contract in Ethereum.
The Ether currency has many communities filled with experts, which has made the market thrive than other altcoins. Hence, many CEOs with big organizations convert the paycheck of people that worked for them into digital currency. However, the decision of New York’s mayor is something that exists in other secular parts. What makes this stand out is the apparent involvement in politics.
Politics is a significant arm that controls other societal functions, and no decisions from any political seat are taken with levity. More so, any financial-related subject is usually thought through deeply because a major action flop would bounce back on the masses. A developed city like New York would instead not take chances on this kind of influence on the public.
Undoubtedly, the mayor’s choice is an individual preference; it is impossible to ignore its prospective impact. Hence, technicians and top influencers can be considered the major push to the crypto market.
Conclusion- Key US Politician
Many controversies surround digital currency, including the response to Eric Adams’s mayor’s first paycheck. Some argue the decision has a hidden agenda: to control a large portion of the global economy. Meanwhile, cryptocurrency is not a monopoly business, and a single man cannot determine its outcome.
Undoubtedly, the most innovative and fastest move primarily receives the highest gain; it still does not nullify the decentralized system in digital currency. It is relatively safe to say that the NYC mayor considers the decisions that will significantly influence the city’s future.