The Associated Press has projected Democratic candidate Joe Biden to win the U.S 2020 election. I’m sure you may have been hearing the news regarding the election. Although the president elect has not taken a public stance on crypto-currency it is important to consider where he may stand on the topic of Bitcoin & crypto-currency.
One of the most interesting rumors about a Biden presidency is the person who he may pick to run the United States Treasury Department. Federal Reserve Governor Lael Brainard could be the nominee for the president-elect. She is most notable for her research into the digital dollar. A blockchain supporter running the U.S Treasury Department could be great news in terms of adoption of crypto as a whole.
It is extremely early to be discussing in what ways President-elect Biden may impact the crypto-space. With no public statements on crypto from the 2020 U.S Election winner, there are no clear indications how or if he will embrace crypto-currency.
One indirect way Bitcoin and others may benefit from the new president is a second stimulus package. Since the CARES Act passed in the United States, the U.S Federal Reserve and citizens alike have been waiting for congress to pass a new relief bill. While addressing the state of the economy November 5th, 2020, Chair Jerome Powell urged congressional cooperation to provide more fiscal support to ensure a strong recovery. Gemini Trust co-founder Tyler Winklevoss tweeted:
in response to Powell’s urge for fiscal assistance. This was an ode to Bitcoin’s total supply of just 21 million coins. As the most previous halving of block reward size has come and gone, the basic nature of supply-demand has been seen at work. Bitcoin has soared to levels nearing the all time high seen in late December 2017.
Assuming the president-elect and congress can see eye to eye on new relief for the American public, the crypto-currency market could benefit greatly. Both increased retail buying power and increased demand with reduced supply. 2021 is sure to be an exciting year for crypto.
We will be following the president