Blockchain.com CEO says US default would hit crypto initially

2^min

A US government default would trigger an initial pull-back from crypto currencies followed by a "push upward" the CEO of London-based crypto firm Blockchain.com said on Thursday.

The US government could fall behind on its bills next month - and even default on its debt - if Congress does not raise a $31.4 trillion cap on government borrowing, a failure that could trigger economic calamity and panic on global financial markets.

In the short term, "a US default or a US recession are probably bad for crypto. These are risk assets, and you want to take risk off," Blockchain.com CEO Peter Smith said at the Qatar Economic Forum, organized by Bloomberg.

"On a long horizon, these are probably good for crypto...If the US government defaults, we'll probably see a quick pull-back and then a very strong push upward in the crypto market."

The crypto currency market has followed cyclical patterns and while 2022 was "quite painful", it is recovering this year and 2024 will be "another exponential year", Smith said.

Blockchain.com, which offers users a crypto wallet and is also a crypto exchange, is considering an expansion of its small Middle Eastern office in commercial center Dubai.

"The (Dubai) government's in a very healthy, consultative process with the industry and about regulations...I think so long as those end up where we think they will, we'll probably be investing heavily in Dubai," he said.

Last September, Blockchain.com signed an agreement with Dubai's crypto regulator Virtual Assets Regulatory Authority (VARA) and has since opened an office and hired staff.

Currently, the company is investing most heavily to shore up operations in Singapore and Europe, Smith said.

Blockchain.com CEO says US default would hit crypto initially

Blockchain

CEO

US

Default

Crypto

Initially

In the details: What comes next in Lebanon’s weapons plan as pressure mounts on Israel?

In the details: What comes next in Lebanon’s weapons plan as pressure mounts on Israel?

Iran ties Lebanon’s fate to US talks, ‘alarming’ France

Iran ties Lebanon’s fate to US talks, ‘alarming’ France

Pope Leo XIV to LBCI: I will continue contacts with world leaders in pursuit of peace

Pope Leo XIV to LBCI: I will continue contacts with world leaders in pursuit of peace

Pope Leo XIV urges leaders to hear their people’s cry for peace, singles out Lebanon (video)

Pope Leo XIV urges leaders to hear their people’s cry for peace, singles out Lebanon (video)

Pope Leo XIV urges leaders to hear their people’s cry for peace, singles out Lebanon (video)

Pope Leo XIV urges leaders to hear their people’s cry for peace, singles out Lebanon (video)

At Beirut waterfront, Pope Leo XIV rides through cheering crowds (video)

At Beirut waterfront, Pope Leo XIV rides through cheering crowds (video)

At Beirut Port, Pope Leo XIV offers silent prayer for blast victims (video)

At Beirut Port, Pope Leo XIV offers silent prayer for blast victims (video)

Pope Leo XIV opens hospital visit with Arabic ’Sabah el-kheir’ — Video

Pope Leo XIV opens hospital visit with Arabic ’Sabah el-kheir’ — Video

Pope Leo XIV tells Lebanese youth Lebanon’s future ‘is in your hands’; watch full speech here

Pope Leo XIV tells Lebanese youth Lebanon’s future ‘is in your hands’; watch full speech here

Pope Leo XIV moved by youth turnout in Bkerke: Video

Pope Leo XIV moved by youth turnout in Bkerke: Video

Pope Leo leaves for Istanbul—Video

Pope Leo leaves for Istanbul—Video

Pope Leo arrives at Turkey's Presidential Palace—Video

Pope Leo arrives at Turkey's Presidential Palace—Video

Pope Leo visits Mustafa Kemal Ataturk's mausoleum—Video

Pope Leo visits Mustafa Kemal Ataturk's mausoleum—Video

Warnings grow in Israel over limits of force against Hezbollah

Warnings grow in Israel over limits of force against Hezbollah

Risks to deposits: Lebanon's banks push back against financial gap law

Risks to deposits: Lebanon's banks push back against financial gap law