Blockchain.com CEO Peter Smith says US default would hit crypto initially

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, organised by Bloomberg.