Can US president Trump ban bitcoin (BTC) and other cryptocurrencies?

Can US president Trump ban bitcoin (BTC) and other cryptocurrencies?

President Trump criticizes cryptocurrenies: "I am not a fan of Bitcoin and other Cryptocurrencies"

The president of the United States, Donald Trump, would cause a huge Bitcoin crash if he banned the currency, but the law would probably stop him from banning BTC, says economist and trader Alex Krueger on Twitter.

Is Trump going to ban the Bitcoin?

3 days ago, President Trump expressed his aversion to Bitcoin and other cryptocurrencies. In a tweet he called digital coins ‘no money’ and ‘terrible’ for the industry. Analysts were quick to say that Trump has raised the Bitcoin course by giving it worldwide attention. The BTC rate rose by a few percent on that day. However, in recent days we have seen that the BTC course has fallen considerably.

In his tweet, economist Alex Krueger analyzes the probabality and success rate of Trump issuing a cryptocurrency ban. Krueger says that in theory he could ban the bitcoin.

The president could achieve this by focusing on entry and exit points for retail and institutional investors. By doing this Trump would turn BTC into an isolated, more illiquid asset as it is used by lay consumers.  Trump could also simply forbid banks to service crypto exchanges. This will make it almost impossible to buy crypto coins.

Trump could also go after fiat onramps, by simply forbidding banks to service crypto exchanges, or by requiring banks to not service exchanges unless conditions XYZ are fulfilled (and make that practically impossible)

However, in reality, Trump needs to convince the Congress of the need to ban Bitcoin. In addition, there is a high probability that lawmakers will not participate in such a measure. The economist therefore summarizes: A ban is feasible, but the chance of a ban is extremely low.

About Viktor Sokolov 163 Articles
Nerd, entrepreneur & coffee aficionado. Believes that blockchain infrastructure and bitcoin will be the money system of the coming decades. Trying to make visible what this means for technology, economy, companies and societies.

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