Cryptocurrency

Bitcoin Policy Institute Shares Bitcoin Report With US Commerce Dept.

Including thoughts on the coin’s value, implications for US interest, Consumer Welfare, and more.

Cryptocurrency

Bitcoin Policy Institute Shares Bitcoin Report With US Commerce Dept.

Including thoughts on the coin’s value, implications for US interest, Consumer Welfare, and more.

Bitcoin Policy Institute (BPI), along with others, have responded to a request for comment on a document mandated by US President Joe Biden’s March 9 executive order on digital assets. The response comes in the form of a report outlining the value of Bitcoin, implications for US interests, Consumer Welfare, and more.

Bitcoin, despite being down alongside the rest of the market, remains the favorite among billionaires like Cathie Wood, Michael Saylor, and Mike Novogratz. The cryptocurrency has also gained popularity amongst financial institutions and providers like Mastercard, and Goldman Sachs, as well as the backing of countries like El Salvador and the Central African Republic.

In the 26-page report issued by the BPI, the uniquely valuable features of BTC are covered, along with implications for US interests, Financial Inclusion and Consumer Welfare, Competitiveness of the asset, National Security scenarios, and Mining and Energy use. The Institute concluded the report with broad policy and principle recommendations.

When outlining the unique value of BTC the report points to its ability to act as a value transfer protocol — in other words the ability to be used as a payment method. The Institute points to the fact that Visa processes an average of 1,400 transactions a second, but that it is not a final settlement layer — in that they have the ability to reverse transactions and take days to settle.

To remove counter-party risk, transfer of liability, intermediaries and have a payment form that settles immediately, the Institute recommends the use of BTC on the Layer 2 protocol Lightning Network.

In regards to the United States’ interest the report read, “the same open, innovative, and informed regulatory environment that led to the flourishing of the early internet in the United States has also provided fertile ground for Bitcoin adoption and innovation. The U.S has particular advantages in fostering and competing for Bitcoin innovators, businesses, and users relative to the rest of the world.”

The sentiment of the report is reminiscent of comments made before Congress earlier this month by Cardano’s founder Charles Hoskinson, who said that should the US government and broader Cryptocurrency Industry work together — there could be “great financial benefits.”

In other news, VanEck files for a new Bitcoin spot ETF with the SEC.

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