On 13th March, an annual Joint Economic Report was published by the US Congress in which the Congress dedicated a whole section to the Blockchain technology and cryptocurrencies, for the very first time.
Joint Economic Report
The Joint Economic Report (2018) contains a whole chapter that provides the insight of the effect of Blockchain and cryptocurrency on today’s US economy and includes scrutiny and recommendations for the rest of the year. According to the report, 2017 was the year of cryptocurrencies, and highlighted the extensive concern over Bitcoin.
The combined value of all Bitcoins in distribution equalled to approximately $15.5 billion, by the starting of 2017; however, it boosted almost 14-fold to over $216 billion by the end of the year. Cryptocurrency market cap was certainly influenced by high prices and such cryptocurrencies like Ripple, Ethereum, and Litecoin also experienced the same gains.
But at the same time, the report also stated that leading economists, like Chair Janet Yellen (former Federal Reserve), still don’t think that cryptocurrencies meet the standard definition of money, and for him, Bitcoin is a highly-speculative-asset.
A stirring surge has been shown in the price of crypto and Blockchain assets, which leaves few crucial economic indexes behind such as;
- Dow Jones Industrial Average
- S&P 500
The report says;
“…If digital currencies become less volatile in the future, valuing items in those denominations could become easier and individuals might begin using them more frequently as a medium of exchange”
There are few recommendations in the document, showing certain concern, as all of the authors advise government agencies are about to consider and analyze new customs for the technology. They specifically distinguish Blockchain’s potential to enhance agency competence and guarantee security against cyber-attacks.
The report also says;
“Policymakers, regulators, and entrepreneurs should continue to work together to ensure developers can deploy these new Blockchain technologies quickly and in a manner that protects Americans from fraud, theft, and abuse while ensuring compliance with relevant regulations”
The analysis also highlighted that Blockchain has demonstrated largely resistant to hacking and has a lot of potential applications. Even though Blockchain and cryptocurrencies still stir up clash, the analysis that was shown in the report proves that administrative associations cannot avoid the innovative technology of Blockchain.
The report also noted that the technology can be used in other fields like;
- Securing critical financial
- Energy infrastructure.
The Subcommittee on Securities, Investment and Capital Markets assembled for a hearing that was dedicated to ICO (Initial Coin Offerings), Blockchain development and cryptocurrencies in the US, making it quite simple understand that more regulatory clarification would be necessary from the US government.