One of the most recent news in cryptocurrency is the executive order signed by president Joe Biden. Some of the reasons why this news might be so influential to the value of cryptocurrency include; the first is that the United States of America has been the financial leader in the world since the end of the Second World War. International transactions are mainly done through the United States dollar, and internal factors in the country affect the entire world.
This news means a lot for everyone investing in cryptocurrency or who wants to get into crypto. But before highlighting the impact this news might have on investors in the world, including Africa, it is important to highlight and explain the executive order and actions that will be taken after the order is issued. The first and one of the most impactful parts of the order was the permission granted to cryptocurrency organisations to exist in the country.
The second part of the executive directive was towards the United States Department of Treasury and all the other Federal Agencies involved in the American currency. This means that cryptocurrency companies were allowed to set up shops in the country. This provides cryptocurrency companies with stability, knowing they are backed by the law to exist and perform their functions. As a result, more funds and efforts will be applied to improve the organisations’ quality and value of services.
The directive towards these organisations was that they should conduct investigations, research and studies or whatever it took to figure out some of the impacts cryptocurrency adoption and legalisation would have on the country. The organisations have to provide the impacts crypto would have on the financial stability of the country and the citizens who invest in the currency. The report developed should also consider companies’ and businesses’ financial stability. The federal agencies also have to investigate the impact cryptocurrency would have on the country’s national security.
The third directive was meant for the Federal Reserve or the Central Bank of America. The directive instructed the Central Bank to study the benefits and consequences of developing a digital currency for the country. All these directives might have a huge impact on the cryptocurrency market and impact investors worldwide. Some main impacts that may affect investors in Africa include: crypto companies in America have the green light to operate, and companies will provide better services to increase their value.
Africans who have adopted and invested in cryptocurrency will benefit greatly from realised profits. The second is that if the reports provided by the U.S Department of Treasury, federal agencies and the Central Bank of America are positive, this might make America adopt cryptocurrency as a legal tender in the country.
The first impact this will have is that the demand for cryptocurrency will increase as people buy crypto to pay for goods and services in the country. The second is that America will use its influence worldwide to make other countries adopt cryptocurrency as a legal tender to allow transactions across borders. This will improve the value of cryptocurrency, and African investors will benefit greatly. This is the best opportunity for Africans to invest in cryptocurrency before it’s too late.
