Who would have thought it? Congress has just released a report that the crypto world is hailing as “extraordinary”, because its report on the state of the economy for the first time has an entire chapter devoted to cryptocurrency. And it seems Congress loves it.
Here are some extracts from the text that highlight the positively bullish stance that Congress is taking:
“The buzz surrounding digital currencies resembles the internet excitement in the late 1990s when people recognized technology companies could change the world. Many internet companies launched and their valuations took off in short order. Many failed, but a few succeeded spectacularly and challenged the conventional ways of doing business.”
Congress even thinks cryptocurrency could “outshine government fiat.”
“Some critics of currencies controlled by government fiat welcome cryptocurrencies because their supply is preprogrammed and perceived as unchangeable. For example, only 21 million bitcoins will ever be issued and the last fraction of a bitcoin will be issued in approximately 2140. Additionally, the creator of Ethereum designed its mining reward to decline exponentially as more miners create blocks, and according to his calculations the supply will be just over 100 million ether.”
Furthermore, the blockchain is secure and efficient.
“Cryptocurrencies and ICOs create headlines, and the pace of financial innovation in the blockchain space amazes skeptics. Yet, with all the headlines focusing on the financial applications, people may miss the digital revolution now happening with other blockchain applications. Even worse, people could be frightened about new developments with the technology as they associate blockchains with the negative headlines. Blockchain technology offers a decentralized, secure, and efficient way to store almost any form of data across multiple platforms.”
And Congress believes it will transform many industries.
“Developers, companies, and governments recognize the potential and have already starting to implement blockchains for many different uses. For instance, health care providers, patients, and policymakers continue searching for portable and secure ways to store medical records digitally.”
The report concludes with a positive and upbeat statement that everyone working on the blockchain will welcome:
“Technology presents evolving challenges and generates new solutions. Blockchain technology essentially stores and transmits data securely, in large volume, and at high speeds. So far, the technology has proved largely resistant to hacking, and given this feature, developers first applied it to digital currencies. Yet blockchain has many more potential applications, such as portable medical records and securing the critical financial and energy infrastructure that the Report identified.”
Yes, there are some words of caution about cryptocurrencies not fitting the standard definition of money and its current limitations as a medium of exchange, but overall we have to welcome Congress’s report as a step forward – the crypto world is feeling the love!