Dollar will always reign over crypto, says US Treasury chief

US Deputy Treasury Secretary Wally Adeyemo has said the US dollar will reign supreme as the world’s most dominant currency despite the continuing surge of Bitcoin and cryptocurrency.

In an interview with CNBC, Adeyemo praised the potential of virtual currency and the opportunities it could offer but admitted the challenges it faces.

“One of the things that we know is that digital assets present an opportunity in lots of ways for the economy, but potentially it presents challenges,” he said.

While the usage of cryptocurrency in criminal matters is a significant issue, Adeyemo proposed the US government tighten its anti-money laundering (AML) rules and collaborate with other nations to police it.

The involvement of the private sector in helping the reduction of illicit activity in the cryptocurrency industry is one that needs to be established, according to Adeyemo.

The new $1.2tn infrastructure bill that President Biden has signed into law will include $550bn of spending that will not only redevelop American infrastructure but create investment opportunities in the nation.

The bill is also significant to cryptocurrency investors who will face tax provisions and Adeyemo says the new spending that will occur due to the legislation will only drive up the value of the US dollar.

“Ultimately, the thing that is going to drive the dollar’s position in the world is the decisions we make in America about investing in our economy,” he said.

“The reason that people are involved in the dollar-based economy, is because they want to invest in America.”