"Financial News" The U.S. Treasury Department noted that Bitcoin's role in the financial ecosystem continues to evolve, noting that Bitcoin has become a store of value similar to gold.

The U.S. Treasury Department noted that Bitcoin’s role in the financial ecosystem continues to evolve, noting that Bitcoin has become a store of value similar to gold. The report states: “Bitcoin’s primary use appears to be as a store of value, or ‘digital gold,’ in the decentralized finance (DeFi) world. Currently, digital assets continue to grow steadily, with interest in the likes of Bitcoin and Ethereum Cryptocurrencies, as well as stablecoins, have generated interest. The U.S. Treasury Department acknowledged in the report that digital assets are growing rapidly, but noted that this growth is coming from a relatively small base. “Despite the small base, digital assets have achieved rapid growth,” the report said. increase. However, the market capitalization of cryptocurrencies remains low compared to traditional financial and physical assets, the report said. According to the Ministry of Finance, adoption of digital assets by households and industries is primarily for investment purposes, with speculative interest playing an important role in market expansion. .” While Bitcoin has attracted attention as a speculative asset, its appeal as a hedge against inflation and economic uncertainty continues to grow, drawing comparisons to traditional safe-haven assets such as gold. The report also highlights efforts to leverage blockchain and distributed ledger technology (DLT) to develop innovative applications and improve clearing and settlement processes in traditional financial markets. Despite growing interest in digital assets, the Treasury Department noted that the rise of these assets "has not dampened demand for U.S. Treasury securities." David Sacks, who was appointed as the head of cryptocurrencies by Donald Trump’s administration, issued a statement on X. He took to social media to denounce “Operation Choke Point 2.0,” an alleged move by U.S. regulators to restrict cryptocurrency companies’ bank access. Sachs expressed concern about the negative impact of the policy, saying on Twitter that there were "too many" stories of people being harmed by the measures. Former President Donald Trump recently pledged that if he were re-elected, he would “immediately end Operation Killpoint 2.0” to ensure a fair and inclusive banking environment for cryptocurrency companies. In their latest statement, Federal Reserve officials expressed their views on the U.S. economy, monetary policy, and the cryptocurrency space. Federal Reserve Board members Hammack and Goolsby made important statements touching on interest rates, economic growth, and Bitcoin’s role in the financial ecosystem. Hammack emphasized that monetary policy should be data-driven. He pointed out that the U.S. economy is still strong, growth is solid, unemployment is low, and inflation is gradually declining. "The economic situation requires a moderately tight monetary policy." Hammack hinted that the Fed may slow down the pace of interest rate cuts, in line with market expectations that there will be only one rate cut in the next two Federal Open Market Committee (FOMC) meetings. Hammack said: "The time for the Fed to slow down the pace of interest rate cuts has arrived, or is coming soon." Hammack also said that the outlook for financial markets is consistent with his view, and that as inflationary pressures ease and the labor market stabilizes, the Fed will take A less radical position. Meanwhile, Federal Reserve Commissioner Goolsby talked about cryptocurrencies, specifically Bitcoin, arguing that Bitcoin’s high volatility prevents it from effectively functioning as a currency. Goolsby said: "Bitcoin's attractive volatility prevents it from becoming a currency because it is not a stable store of value." Goolsby also expressed concern about the broader economic impact of cryptocurrencies. Skeptic, calling it a speculative asset, has limited real-world applications: “So far, the rise of cryptoassets hasn’t had much of a macro impact, but there could be wealth implications.”