U.S. Treasury Frames Cryptocurrencies as Consumer Risk in its Financial Inclusion Strategy

The U.S. Treasury Department has described cryptocurrencies as more of a consumer risk than a tool for advancing financial accessibility in its National Strategy for Financial Inclusion unveiled on October 29.

The Department developed the strategy document in response to a Congressional mandate, and it seeks to expand Americans’ access to secure financial services while maintaining a cautious stance on digital assets.

The plan builds on previous research, including a September 2022 report on digital assets. It emphasizes three key areas: improving access to affordable credit, making government financial services more inclusive, and strengthening consumer protections against predatory practices.

This approach underscores a preference for traditional banking solutions over emerging financial technologies, even as digital asset advocates continue to highlight blockchain’s potential to advance financial inclusion.

The Treasury’s stance contrasts with the views of many crypto proponents who argue that blockchain technology could empower underserved communities.

This divergence in views reflects a broader debate on cryptocurrency’s role in American finance. According to a report by The Digital Chamber, a crypto trade association, cryptocurrency is likely to influence voter decisions in the 2024 election. The survey found that one in seven respondents views cryptocurrency as a significant factor in choosing a candidate, with many rating it as “extremely” or “very” important.

Notably, cryptocurrency remains a contentious topic among candidates as the U.S. presidential election draws near.

Vice President Kamala Harris, who has expressed cautious support for the crypto sector, has highlighted concerns about consumer protection. In a significant moment for her campaign, she pledged at a Wall Street fundraiser in Manhattan on September 23 to support investments in artificial intelligence and digital assets, signalling an openness to digital finance as she appeals to tech-forward voters.

In contrast, former President Donald Trump has taken a more favourable view. He has gone as far as suggesting the establishment of a strategic Bitcoin reserve.

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