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2023 US Presidential Economic Report: Cryptographic assets are too risky to be used as a payment tool or to expand financial inclusion

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According to reports, in 2023, the US President\’s Economic Report was released, with a total of 9 chapters. Chapter 8, \”Digital Assets: Learning Economic Principles Again,\” first i

2023 US Presidential Economic Report: Cryptographic assets are too risky to be used as a payment tool or to expand financial inclusion

According to reports, in 2023, the US President’s Economic Report was released, with a total of 9 chapters. Chapter 8, “Digital Assets: Learning Economic Principles Again,” first introduces the potential advantages of cryptocurrencies, including improving payment systems, enhancing financial inclusiveness, and creating a mechanism for allocating intellectual property and financial value; Subsequently, it was pointed out that crypto assets did not bring any relevant benefits, pointing out that crypto assets are mainly speculative investment tools, cryptocurrencies generally cannot effectively play all the functions of currencies like sovereign currencies (such as the United States dollar), stable currencies may be affected by operational risks, crypto assets may cause losses to consumers and investors, and the economic benefits of distributed ledger technology (DLT) are limited Financial innovation risks, as well as other risks such as leverage risks, price fluctuations, illegal financial risks, and the use of extortion software. In addition, this chapter also discusses the upcoming improvements to US payments and the introduction of CBDC. The chapter concludes that “crypto assets are too risky to serve as payment instruments or expand financial inclusion, and they appear to continue to exist, posing risks to financial markets, investors, and consumers.”.

2023 US Presidential Economic Report: Cryptographic assets are too risky to be used as a payment tool or to expand financial inclusion

I. Introduction
– Brief overview of the US President’s Economic Report
– Purpose of Chapter 8: “Digital Assets: Learning Economic Principles Again”
II. Advantages of Cryptocurrencies
– Improving payment systems
– Enhancing financial inclusiveness
– Mechanism for allocating intellectual property and financial value
III. Potential Risks of Crypto Assets
– Mainly speculative investment tools
– Limited ability to function as sovereign currencies
– Operational risks for stable currencies
– Losses for consumers and investors
– Risks associated with distributed ledger technology
– Leverage risks
– Price fluctuations
– Illegal financial risks
– Use of extortion software
IV. Improvements to US Payments and Introduction of CBDC
– Discussions on US payments systems
– Introduction of CBDC
V. Conclusion
– Crypto assets are too risky as payment instruments or for financial inclusion
– Risks to financial markets, investors, and consumers
– Ways to mitigate potential risks
VI. FAQs
1. What is the US President’s Economic Report?
2. What are the potential advantages of cryptocurrencies?
3. What are the risks associated with crypto assets?
# Digital Assets: Learning Economic Principles Again
In 2023, the US President’s Economic Report was released which contained a total of 9 chapters. One of these chapters, Chapter 8, discusses digital assets and how they may affect the economy. The chapter first introduces the potential advantages of cryptocurrencies, including the ability to improve payment systems, enhance financial inclusiveness, and create a mechanism for allocating intellectual property and financial value.
However, the chapter also notes that crypto assets do not provide any relevant benefits. For the most part, crypto assets are mainly speculative investment tools. Cryptocurrencies generally cannot effectively play all the functions of sovereign currencies, such as the United States dollar. Additionally, stable currencies may be affected by operational risks and crypto assets may cause losses to consumers and investors. The economic benefits of distributed ledger technology (DLT) are limited, and there are financial innovation risks as well as other risks such as leverage risks, price fluctuations, illegal financial risks, and the use of extortion software.
In addition to these potential risks, Chapter 8 also discusses upcoming improvements to US payments and the introduction of CBDC. The chapter concludes that “crypto assets are too risky to serve as payment instruments or expand financial inclusion, and they appear to continue to exist, posing risks to financial markets, investors, and consumers.”
Despite these potential risks, there are ways to mitigate them. It is important for individuals and organizations to understand the risks associated with digital assets and take measures to protect themselves. For example, individuals can perform thorough research and due diligence on any cryptocurrency investment they are considering. Companies should adopt strict security measures, including multi-factor authentication and regular security updates, to protect against hacking and other attacks.
In conclusion, while digital assets such as cryptocurrencies have the potential to revolutionize the economy, they also come with significant risks. In the US President’s Economic Report, Chapter 8 explores these risks in detail and concludes that crypto assets are too risky to serve as payment instruments or expand financial inclusion, and they pose risks to financial markets, investors, and consumers.

FAQs

1. What is the US President’s Economic Report?
The US President’s Economic Report is an annual report that provides an overview of the current state of the US economy, as well as future projections and recommendations for policy changes.
2. What are the potential advantages of cryptocurrencies?
Cryptocurrencies have the potential to improve payment systems, enhance financial inclusiveness, and create a mechanism for allocating intellectual property and financial value.
3. What are the risks associated with crypto assets?
The risks associated with crypto assets include the fact that they are mainly speculative investment tools, they have limited ability to function as sovereign currencies, they are subject to operational risks for stable currencies, they can cause losses for consumers and investors, and there are risks associated with distributed ledger technology, leverage risks, price fluctuations, illegal financial risks, and the use of extortion software.

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