- Cryptocurrencies have been growing in popularity.
- Former Secretary of State Hillary Clinton recently shared her opinion on cryptocurrencies.
- Clinton is not in favor of cryptocurrencies for a few key reasons, including their potential influence on the global economy.
The reasons may surprise you.
Cryptocurrencies have increased in number, with more new virtual currencies regularly being made available. Interest in investing in them has also increased, with millions of Americans recently investing in crypto for the first time or planning to do so in the near future.
While some well-known entrepreneurs and business leaders have made clear they're interested in and in favor of cryptocurrencies, including Elon Musk, others have been less enthusiastic about virtual coins.
One person who is decidedly not in favor of virtual currencies is former secretary of state and presidential candidate, Hillary Clinton. Here's what Clinton has to say about why she dislikes cryptocurrencies.
Here's why Hillary Clinton doesn't like crypto
Clinton discussed cryptocurrencies at the Bloomberg New Economy Forum in 2021 and her statement made clear that she's not generally a fan of cryptocurrencies, even though she has previously referred to them as "interesting."
Her concern largely centers on the influence these coins could have on the global economy and on the global political climate.
"One more area that I hope nation states start paying greater attention to is the rise of cryptocurrency," Clinton said at the Bloomberg forum. “Because what looks like a very interesting and somewhat exotic effort to literally mine new coins in order to trade with them has the potential for undermining currencies, undermining the role of the dollar as the reserve currency, for destabilizing nations, perhaps starting with small ones, but going much larger.” A reserve currency is a foreign currency that central banks and monetary authorities hold for use in international transactions.
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Clinton also called for additional regulation of cryptocurrencies in a television interview on MSNBC around the same time, stating, "There’s one other thing that’s on the horizon, which people are only beginning to pay attention to, and that’s the need to regulate the cryptocurrency market."
Clinton believes additional regulation is necessary because cryptocurrencies are vulnerable to manipulation by bad actors. "We’re looking at not only states such as China, Russia, or others manipulating technology of all kinds to their advantage," Clinton warned. "We’re looking at non-state actors, either in concert with states or on their own, destabilizing countries, destabilizing the dollar as the reserve currency.”
Should her opposition affect your investment choices?
Clinton's concerns about cryptocurrencies focus not on the future of specific coins, but rather on the broader impact of these largely unregulated currencies. Still, investors should consider her words carefully for a few reasons.
First, if countries are destabilized as cryptocurrencies become more prevalent -- and are potentially manipulated -- this can affect all of your investments, not just crypto assets.
If Bitcoin were to become a serious threat to the dollar's status as the reserve currency, this could also have a profound impact on the U.S. economy and on your investment portfolio. Many crypto advocates have suggested that Bitcoin could potentially become an alternative to the dollar in filling this role, although the St. Louis Federal Reserve President James Bullard has recently commented this is an unlikely outcome.
Finally, if other leaders embrace Clinton's concerns and move forward with additional regulations, this could have a profound impact on the crypto market. And there is evidence to suggest her concerns are widespread, with the Securities and Exchange Commission (SEC) making crypto regulations a top priority.
For all of these reasons, it's worth thinking about the far-reaching impact cryptos could have when building an investment portfolio to help you build wealth.
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