A US Congressman requests a full ban on crypto mining and trading for the US citizens.
The use of cryptocurrencies in the US, while slowly moving forward, still has a lot of opposition. The latest example of this was just witnessed recently when one of the US lawmakers made a call for a crypto mining and buying ban.
Crypto Trading and Mining Should Be Banned, Claims US Congressman
Brad Sherman, a US Congressman knew for some of the more controversial statements regarding cryptocurrencies, has just requested a full ban on crypto buying and mining. The call for a ban came this Wednesday, during a House of Representatives Financial Services Committee’s subcommittee hearing. On this occasion, the congressman decided to propose that the US citizens get completely cut off of the crypto market.
The congressman did not waste any time, and his opening statement said that all US persons should be prohibited from mining and buying cryptos. He later elaborated on this request, stating that,
It’s a solution ONLY to the problems of tax evaders, criminals, and terrorists!
Luckily, pretty much nobody agreed with his extreme views, while some, like Heritage Foundation’s Center for Data Analysis director, Norbert Michel, even stood against his request. Michel admitted that criminals have been known for using Bitcoin. However, they also used computers, cars, and airplanes. Just because something is used with a bad intention, doesn’t mean that such instruments are bad or that they should be criminalized.
One interesting fact regarding Congressman Brad Sherman is that his largest donor is Allied Wallet, which is a known credit card processor. The congressman has even stated that there is no real need for cryptos, considering that credit cards are now accepted pretty much everywhere.
CBDC? No, Thanks.
Even though the large part of this hearing mostly revolved around various other issues, like history and monetary policies, there was still enough crypto-debating to show that there is a general opposition to the very idea of CBDC (Central Bank Digital Currency). Basically, a lot of banks around the world were exploring the possibility of using technology provided and used by cryptocurrencies like Bitcoin.
Implementing such systems would mean a complete overhaul of how transactions work. There were even some talks of introducing entirely new digital money systems, and that such technology can improve efficiency and transparency.
However, there are also many who are opposing the idea, pointing out potential risks, and not wanting to change the traditional methods. The concept reached the Wednesday’s hearing, and R Street Institute’s senior fellow, Alex Pollock, stood against it, saying that it is the worst financial idea that has been conceived lately.
Others, while not as strongly against the idea, still pointed out that such a change would be incredibly large, and that there are a lot of fundamental questions and unsolved problems. Those would need to be addressed first, before any more discussions on the subject.
Cryptos Might Have Some Positive Impacts
One positive development included the claim of Cornell University’s Trade Policy senior professor, Dr. Eswar Prasad. Dr. Prasad has stated that there is a large possibility that cryptos might have a positive influence on the financial services system, especially when it comes to making payments. According to him, implementing cryptos and their technology might make transactions not only easier, but also cheaper.
Michel commented on this as well, stating that it is very difficult to imagine that the US dollar might be replaced by cryptocurrencies. This is not possible, and it will not be possible for as long as the Federal Reserve continues to act as a decent steward of the US dollar.
The discussions stopped there, with a decision that the topics such as these will have to be revisited, considering how crypto impact continues to rise.