US Treasury Unveils Financial Inclusion Strategy, Flags Crypto as Consumer Risk

The United States Department of the Treasury has shared its new national strategy for financial inclusion but excludes crypto assets.

This plan focuses on helping more people access safe financial services. However, it only mentions crypto assets as a possible risk for consumers.

The report commended the US Vice President Kamala Harris for her contribution to enhancing access to capital, economic opportunity, and credit.

US Treasury Focuses on Financial Inclusion While Scrutinizing Digital Assets

The US Treasury released a notice explaining its new national strategy. It said that Congress had asked for the report. While the proposed national strategy aims to improve access to safe financial services, it flagged cryptocurrencies as a potential risk for consumers.

The report provides recommendations to improve financial security and ensure people can safely access financial products. The Treasury Department said one way it supports financial inclusion is through research.

It noted that it has been studying how consumers use digital assets and what risks they face. This work includes a series of publications" examining consumer behavior with digital assets.

In September 2022, it released a report as part of this series. The report helps the department understand the effects of digital assets on consumers. By studying these risks, the department hopes to create safer financial options for people.

The US Treasury's national strategy focuses on making financial services more accessible and fair. One key recommendation is to increase access to safe and affordable credit" for all consumers.

Also, it wants to make government financial services and products more inclusive. This means helping more people benefit from these services.

Another goal is to protect consumers from illegal and predatory practices." This involves guarding people from scams and harmful financial schemes. Through these steps, the strategy aims to create a safer and more equal financial system for everyone.

Harris Praised for Expanding Access to Capital and Credit

In the report, National Economic Advisor Lael Brainard praised Vice President Kamala Harris for her efforts. She said Harris played a big role in expanding access to capital and improving access to credit, allowing people to borrow when needed.

Additionally, Brainard noted that Harris has worked to create more economic opportunities for everyone. These efforts aim to support growth and improve financial well-being in the community.

The government department's strategy stated that it would not consider cryptocurrencies like Bitcoin for financial inclusion in the United States. This means they do not see crypto as a way to help more people access financial services.

Supporters Advocate for Crypto Assets in US Financial Inclusion Strategy

Meanwhile, many supporters of digital assets understand that investing in cryptocurrencies can be risky. So, they acknowledge these risks when discussing crypto investments.

Despite these concerns, supporters often highlight the benefits of the technology. They believe it can help level the playing field, giving people without access to traditional banking a chance to participate in the financial system.

During his time in office, President Joe Biden signed an executive order that created a framework for digital assets like cryptocurrencies. It directed various government departments to study how digital assets affect different areas.

These areas include protecting consumers and investors. Meanwhile, the order also looks at financial stability and inclusion and aims to promote responsible innovation in the financial sector.

The order focuses on maintaining the United States' global financial leadership while combating illegal financial activities. The Treasury Department is actively involved in this process. It is working on policy recommendations for cryptocurrencies based on the executive order.

Through this effort, the government aims to create clear rules and guidelines for the use of digital assets.

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