United States of America: Adopted Economic Report of the President including cryptocurrency analysis

On 20 March 2023, the President's Economic Report, including an analysis on the use of crypto assets, was published. The report includes sections on "the Perceived Appeal of Crypto Assets" and "the Reality of Crypto Assets", where arguments against certain benefits are outlined. Specifically, the report claims that crypto-assets do not fulfil the function of money as sovereign money does. Additionally, the report states that distributed ledger technology (DLT) use has not had significant economic benefits as promoted, arguing that the risk of crypto assets remains high and investors and consumers do not benefit sufficiently from the system. Further, the report argues against the claim that cryptocurrencies could decentralise the financial system effectively without relying on government intervention. The report claims the control is given to "pseudonymous global actors" that do not trust or rely on existing financial institutions. The report addresses stablecoins and evaluates the claim that they could eliminate exchange risks and enable faster and better payment systems. The report highlights run risk as an answer to that assertion, noting that if individuals were to redeem their stablecoins simultaneously, the digital payment institution would need to liquidate its reserves, leading to market disruptions.