The US must find its own way into the acceptance of crypto-currencies, instead of “building [its] own versions of China’s electronic payments systems.” Ferguson said Sunday in a Bloomberg Opinion that the latest pandemic is basically good for acceptance of cryptocurrencies and speeds up the “monetary revolution” all over the world. The historian observed, however that China has “advancing rapidly” in the implementation of its digital yuan and the growing use of mobile payments. Apps such as Alipay and WeChat Pay currently manage transactions annually of nearly $40 trillion.
The historian claims that these China initiatives are a template for creating cross-border payment and remittance systems in other countries. Yet he urged the United States to do so: “Even governments that are resisting Chinese financial penetration, such as India, are essentially building their own versions of China’s electronic payments systems,” said Ferguson. “Rather than seeking to create a Chinese-style digital dollar, Joe Biden’s nascent administration should recognize the benefits of integrating Bitcoin into the U.S. financial system.”
Ferguson added that US officials have already strategies for dealing with Bitcoin compliance (BTC). The Internal Revenue Service now allows people to make a statement relating to their crypto holdings on their returns which can be referred to Coinbase customers who do not comply with the tax and reporting standards. Moreover, the Federal Bureau of Investigation has had its eyes on cases of money laundering using crypto.
“The point is simply that the financial data of law-abiding individuals is better protected by Bitcoin than by Alipay,” said the historian.