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US Congressional Research Paper Says Bitcoin Not A Mode Of Payment

03 Jun 2019

The US Congressional Research Service, published a report, on how bitcoin is not a mode of payment, but more of an investment tool.While the paper enumerated the perks of alternative cashless payment modes, it stated that, in 2019 through March 12, the Bitcoin system averaged about 310,000 transactions per day globally, a pace that would result in about 113 million transactions per year.While the number is impressive by all means, the report said, “Moreover, one problem with this measure it that it is a count of how many times two parties have exchanged Bitcoin, not a count of how many times Bitcoin has been used to buy something. Some portion of those exchanges, possibly a significantly large portion, is driven by investors giving fiat currency to an exchange to buy and hold the Bitcoin as an investment. In those transfers, Bitcoin is not acting as money (i.e., not being exchanged for a good or service).”The report further stated that several characteristics of cryptocurrencies, undermine its ability to serve as alternate to government-backed currencies. It said, “Cryptocurrency may be used as a medium of exchange less frequently than traditional money for several reasons. Unlike the dollar and most other government-backed currencies, cryptocurrencies are not legal tender, meaning creditors are not legally required to accept them to settle debts.”To be honest, this report comes as a shocker, especially, because last month, two bills on cryptocurrencies were introduced in the US Congress.US representatives Warren Davidson and Darren Soto, who have been at the forefront of bringing about blockchain and cryptocurrency to the mainstream had introduced two Bills on the same in the Congress, in April this year. The Bills were called Virtual Currency Consumer Protection Act of 2019 and U.S. Virtual Currency Market and Regulatory Competitiveness Act of 2019, as reported by Crypto-News India.Liked what you read? Join us on Telegram

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