The announcement of a harder pace in the USA is clogging up crypto currencies. The oldest and most important cyber currency, the Bitcoin stock market chart, fell to 9226 dollars on Wednesday, losing around 1500 dollars within 24 hours.
Also other crypto currencies lost clearly. Ethereum fell in the night by 12 percent to 195 dollars, its lowest level since the beginning of May. Litecoin and Eos also fell by double digits.
On Tuesday, US Treasury Secretary Steve Mnuchin declared the use of crypto currencies a “danger to national security”. He associated Bitcoin and Co. with “cybercrime, tax evasion, extortion, illegal drugs and human trafficking. In addition, the “purely speculative nature” is a concern for financial stability. Bitcoin and Co. are “highly volatile and built on thin air”.
The state will not ban crypto currencies
The state will not ban crypto currencies, Mnuchin said, but will enforce compliance with the rules applicable to the financial sector. In the crypto scene, the statements were also seen as an attack on tether, a copy of the US dollar that has been instrumental in inflating prices in recent months. Investing in BTC is still a good idea for many traders, read the guide at https://london.storeboard.com.
Also on Tuesday, the banking committee of the US Senate, David Marcus, who heads the digital currency project “Libra” on Facebook, had taken a hard look at the situation. The parliamentarians described the plans of the online network as “crazy”. It is also a “delusional idea” that Facebook, in the face of numerous data scandals, believes that the policy will allow the company to manage its customers’ money. Marcus stressed that Facebook would only launch the project with the approval of state regulators.
Limiting the risks
According to the French authorities, the seven most important industrialized countries want to limit the risks of new digital currencies. This will be one of the priorities at the G7 meeting starting Wednesday in Chantilly near Paris, said French Finance Minister Bruno Le Maire in an interview with Italian newspaper Corriere della Sera. The G7 countries must be very attentive here.
Federal Finance Minister had already announced resistance on Tuesday: “The issue of a currency does not belong in the hands of a private company, because it is a core element of state sovereignty. At the G7 meeting of finance ministers, a working group headed by ECB Director Benoit Coeuré will present initial findings on crypto currencies.