The New York Attorney General, Letitia James, has issued a warning that Bitcoin could threaten the supremacy of the U.S. dollar and diminish America’s economic clout around the world. There is increasing support for stricter regulations on cryptocurrencies as political groups unite on policies regarding stablecoins and the regulation of digital assets. Research indicates that Bitcoin might jeopardize the global standing of the U.S. dollar. James has expressed new worries regarding Bitcoin’s expanding global influence, cautioning that it might jeopardize the U.S. dollar’s supremacy. In an extensive letter addressed to congressional leaders, titled “Letter to Congress on Digital Asset Regulation,” she called for prompt and thorough federal regulations for digital assets. She contended that their uncontrolled growth could disrupt the financial system and facilitate illegal activities. The U.S. must protect the dollar’s leading role in international transactions—a role that is at risk from Bitcoin, which allows for instant value transfers worldwide. Providing justification and background information. James emphasized that Bitcoin is being utilized more frequently for international transactions, avoiding conventional fiat systems. This change may undermine the dollar’s primary position in international trade and finance. The letter further mentions wider effects, backed by a 2023 report from the U.S. Government Accountability Office that observes: The growing adoption and utilization of digital assets may lead to a decrease in the U.S. dollar’s influence within global financial markets, which could weaken the power of U.S. sanctions and hinder their role in advancing U.S. policy objectives. Furthermore, the letter cautions that: The replacement of the dollar’s supremacy by Bitcoin or another currency could diminish the strength of the U.S. dollar, consequently impairing America’s capability to uphold its global interests and sustain a strong economy. These concerns resonate with the views of BlackRock CEO Larry Fink, who has referred to Bitcoin as a possible safeguard against U.S. inflation and financial instability. There are increasing demands for enhanced regulation and consumer protection. Letitia James highlighted the immediate necessity for regulations to avert the illegal exploitation of digital currencies.
New York’s Attorney General has identified Bitcoin as a potential threat to the global dominance of the U.S. dollar.
