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Cryptocurrency exchanges and social media platforms, according to the former Secretary of State, might destabilise the US dollar as a reserve currency if left unregulated.
Former Secretary of State Hillary Clinton has stated that cryptocurrency markets require more stringent laws to prevent against technological manipulation by Russia, China, and other countries.
Her comments on cryptocurrency were part of a larger segment in a Wednesday interview with MSNBC TV news host Rachel Maddow on the manipulation of social media platforms by certain nations.
Clinton’s warning extended to “technology of all kinds,” which she said states and non-state entities could use to destabilize countries and the dollar as the reserve currency of the world. She said, “There’s one other thing that’s on the horizon, which people are only beginning to pay attention to, and that’s the need to regulate the cryptocurrency market.”
“Imagine the combination of social media, the amassing of even larger sums of money through the control of certain cryptocurrency chains,” she said.
“We’re looking at not only states such as China, Russia, or others manipulating technology of all kinds to their advantage. We’re looking at non-state actors, either in concert with states or on their own destabilizing countries, destabilizing the dollar as the reserve currency.”
A particular focus she had was on how social media platforms, which have been used to influence elections through disinformation, could be combined with the cryptocurrency markets in a way to help state and non-state actors destabilize other countries. Although she didn’t go into detail, such methods include manipulating markets, creating excitement, or even using social media troll farms to orchestrate a financial meltdown.
In recent years, countries have used or publicly discussed utilising cryptocurrencies to circumvent US economic sanctions.
North Korea has utilised cryptocurrencies to fund its nuclear weapons programme, for example. To evade discovery, the country has also deployed privacy coins and other techniques.
The Iranian government has also expressed its support for cryptocurrencies. Saeed Mohammad, the commander of the Islamic Revolutionary Guard Corps, advocated on Iran to embrace cryptocurrencies to avoid sanctions in early 2020.
Clinton has recently spoken out against the threats that cryptocurrency poses to the dollar’s worldwide supremacy. While cryptocurrencies are a “interesting” technology, she warned at the Bloomberg New Economy Forum in Singapore on Friday that they can have negative consequences for the United States and other countries, “possibly starting with tiny ones but getting much larger.”