A bill to regulate cryptocurrencies is headed to the US Senate as the country considers creating a digital dollar.
Russia's war on Ukraine has been felt in the stock markets and in the cryptocurrencies, . The crypto market currently has a total capitalization of $1,95 trillion, down 12% from the beginning of this year. However, despite the drop in value, cryptoassets continue to gain popularity, especially among citizens of the two Eastern European nations currently at war.
In the last weeks, Bitcoin (BTC) and the main cryptocurrencies in the market, such as Ethereum (ETH), polkadot (DOT) y Dogecoins (DOGE), have gained adoption and popularity among Russians and Ukrainians. In Russia, it is presumed that Vladimir Putin’s government and its allies may be using cryptocurrencies to circumvent sanctions imposed by the European Union and the United States, while Ukraine is benefiting from the cross-border transactions facilitated by these digital assets, receiving nearly $60 million in crypto donations in recent weeks.
In light of the rise of cryptocurrencies, US Senator Elizabeth Warren has introduced a bill to regulate transactions involving these digital assets, in order to prevent Russia from evading the sanctions imposed. Meanwhile, US President Joe Biden will order the creation of a commission to evaluate the possibility of creating and issuing a digital dollar.
Since 2021, the Federal Reserve (FED) has been considering the possible issuance of a central bank digital currency (CBDC) for the US dollar.
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Cryptocurrencies in sanctions against Russia
US Senator Elizabeth Warren has said that her new bill is focused on preventing cryptocurrencies from being used to undermine economic sanctions. The US government wants to encircle Russia on an economic level. Therefore, the bill introduced by the senator points to the role that cryptocurrencies may be playing in the Russia-Ukraine war.
For many, Senator Elizabeth Warren's words demonstrate the pressure the US government is putting on the crypto industry. In recent weeks, the US has been asking cryptocurrency companies and platforms to block the accounts and funds of Russian citizens in general as part of sanctions. However, many have refused such actions citing the principles of financial freedom offered by crypto assets.
Although Warren's proposal has not been approved and is still in draft form, it urgently points out the need to regulate cryptocurrencies in the country, to monitor and control transactions, in order to detect any suspicious activity. In her proposal, Warren acknowledged that there is still a need to regulate cryptocurrencies in the country. “We have not seen widespread evasion of our sanctions using methods such as cryptocurrencies”However, he said it was vitally important for U.S. national security to monitor the industry.
The Treasury Department, led by Janet Yellen, and the Securities and Exchange Commission (SEC), led by Gary Gensler, have also been pushing for greater control over cryptocurrencies. The aim is to keep a detailed record of companies that provide services with crypto assets, as well as the clients and users who make use of these services. As Jerome Powell, president of the Federal Reserve (FED), pointed out, cryptocurrencies are an emerging industry, but they lack clear regulation on their use and trade in the country.
Digital dollar
Next week, US President Joe Biden will order the creation of a commission to evaluate the digital dollar, The Wall Street Journal reported. According to the American newspaper, the Treasury Department will also evaluate the potential risks surrounding cryptocurrencies and digital assets at the request of the president. The Biden administration wants to know the implications that the crypto industry could have on the country's financial stability and national security, in addition to the environmental impact that crypto mining generates.
Currently, the United States is the country with the highest concentration of Bitcoin computing power. At the time of this writing, the market-leading cryptocurrency is trading at around $100,000. $41.600 per unit.
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