Hester Pierce, a pro-crypto SEC commissioner, who is often referred to as “crypto mom” in the crypto community, recently predicted that there would be increased demand for crypto by investors.
The SEC commissioner claims that investors will turn to crypto in a bid to diversify their investment portfolios. For a while now, Commissioner Pierce has been a staunch supporter of the industry. She is one of the few senior officials at the SEC that support the approval of Bitcoin ETFs by the SEC.
Her Sentiments on Crypto and the Digital Dollar
Commissioner Pierce made her sentiments about increased demand for crypto during a crypto discussion that was streamed live on April 28, 2020. The Crypto Finance Conference St. Moritz organized the discussion. According to her, the COVID-19 pandemic has had a huge impact on all sectors of the economy, including the crypto sector.
She said that the SEC was seeing more interest from institutional investors than they had in the past. The commissioner predicted that this interest would continue growing as people seek for avenues to diversify their investment portfolios.
According to her, the pandemic had made people more comfortable working in the virtual world in all industries. As a result, more people were likely to invest in the crypto space. In previous interviews, Pierce has noted that a major benefit of the crypto sector is that it brings people from all over the world together and they can work together online. For people to work together in the crypto sector, they do not need to be in the same physical location.
Pierce joined the SEC on January 11, 2018. Her term expires on June 5, 2020. During her time at the SEC, she has been a consistent proponent of the SEC approving Bitcoin ETFs. Thus far, the SEC has not approved any BTC ETF. In February this year, she made a proposal that would have provided crypto startups with a regulation-free grace period.
Her Thoughts on the Digital Dollar
During the live-streamed discussion, Pierce also discussed the digital dollar. According to her, the idea of a digital dollar was very different from the current crypto and blockchain industry. However, she noted that it was helpful to have people thinking about the pros and cons of a government-issued digital currency versus a privately issued digital currency.
Commissioner Pierce noted that a digital dollar would raise privacy concerns. The reason for this was that such a digital dollar would allow the government to collect an unprecedented amount of data on their financial activity. Pierce added that people were not comfortable with the government or any organization monitoring their financial activity.
The Fed has been looking into the digital dollar for a while now. Its efforts to understand a digital dollar were intensified after the Facebook Libra coin and the Chinese Digital Yuan were revealed to be in the works. However, the Fed has publicly stated that it has no plans to issue a digital dollar.
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