The great benefit of having an XRPaynet card is that it can be used to make transactions in connection with an XRP account, which in turn is designed to help you navigate the often uncertain world of crypto with agility, flexibility and, above all, security.
In the latter case, news of hacking incidents here and there is a reminder of how a secure system is essential for the growth and credibility of crypto. But other issues can make this a volatile world in which those with the leading facilities for trading and spending in crypto will be best placed to avoid big losses and make good gains.
The Trump Effect
Anyone who thought that crypto was somehow disconnected from the ‘real’ world has certainly reckoned without Donald Trump.
In his whirlwind first six months back in the White House, there have been few things he hasn’t sought to make a mark on, from overseas conflicts to trade wars. But he has also got deeply involved in the crypto world.
As ever, the President’s actions have polarised opinions, but they cannot be ignored. In the case of crypto, this one-time sceptic returned to the highest office with pledges to replace financial sector regulators with pro-crypto enthusiasts, build a Bitcoin reserve and make the US the leading crypto nation in the world.
New Policy Report Drops Bitcoin Plan
In the latter case, the legislation aimed at doing this, the GENIUS Act, was signed into law by Mr Trump on July 18th, but more was to come – and has been emerging in the form of the first Virtual Asset Policy Report, produced by a working group headed by the President.
Details are starting to emerge, which may include some surprises. Ahead of the announcement, Bitcoin was trading as high as $118,000, having been persistently above $100,000 since the election. However, the plan for a national Bitcoin reserve appears to have been dropped.
This all leaves some very interesting questions about where the US government is going with all this. It retains a pro-crypto stance, rejecting the Biden administration’s approach of strict regulation and suspicion that crypto could be a focus for money laundering and other nefarious activity.
It may be argued that a bitcoin reserve would be somewhat otiose; an article in Investopedia last December, when Mr Trump was president-elect, suggested as much.
This article noted that some argued the establishment of such a reserve could give the US government some control over the cryptocurrency, deterring other countries from using it as an alternative to the dollar. Against that was the risk that a Bitcoin price crash could leave US taxpayers liable to bail investors out.
What Now For Bitcoin?
How much such competing considerations have been debated by the committee before the strategic reserve idea was dropped, but it may have significant implications for Bitcoin, which has enjoyed higher values as a result of the special status the reserve would have given it. Might there now be significant divestment?
This is the kind of uncertainty that can make crypto prices volatile and makes smart, agile trading a wise approach to deal with the slings and arrows involved. It might also be argued that this is simply an extension of the uncertainty affecting other areas of the US and global economy when Mr Trump is involved.
In this case, it has led to the President gaining the unflattering nickname TACO (standing for “Trump always chickens out”) in the financial markets, implying he always backs down on major tariff threats and trade wars. He, of course, would argue it is all part of the ‘art of the deal’.
The Wider Implications
However, the report should be seen in wider terms, not just the absence of the Bitcoin reserve. The GENIUS Act already provides for the backing of Stablecoins pegged to the US dollar, while the Clarity Act is designed to facilitate institutional investment in cryptoassets. As such, much of the report highlights a direction of travel that is already being shaped by legislation.
Nonetheless, the development of some clearer trading rules confirms that any suggestion that the strict and wary approaches to crypto seen in the Biden years would be replaced with a wild west approach is wide of the mark.
Instead, the Securities and Exchange Commission and Commodity Futures Trading Commission, having closed gaps in oversight of crypto, are now being asked to lay the ground for trading assets at the federal level. This is not about mass deregulation, but enabling the government to get involved in capitalising on trading opportunities.
How all this plays out in cryptocurrency markets remains to be seen. But the good news is that with an XRPaynet card, you can still make the most of the transactional opportunities it presents as crypto becomes ever more mainstream.