Cryptocurrency: Monetary Mutiny
Why Law Makers Should Change Their Perspective
We are living in historic times and witnessing a remarkable change in the social norm of currency and how financial transactions are conducted. Blockchain technology and cryptocurrency are gaining traction fast, yet this is just the beginning for what's to come.
As technology progresses at an increasing rate, our monetary system is getting a much-needed upgrade. Current financial transactions are slow, expensive, and not very reliable, but blockchain technology has cured this ailment.
Not everyone is enthusiastic about the possibilities of blockchain. Governments and banks alike have lashed out at individuals and companies, passing ridiculous regulations as an attempt to deter entrepreneurs and reduce mainstream adoption.
There have even been members of congress who have voiced great concern over bitcoin and other cryptocurrencies. For example, fearful Rep. Brad Sherman (D) has stated:
“Clearing through the New York Fed is critical for major oil and other transactions. It is the announced purpose of the supporters of cryptocurrency to take that power away from us, to put us in a position where the most significant sanctions we have against Iran, for example, would become irrelevant.”
Well, someone needs to inform him that this is inevitable and unstoppable, there is nothing he or any member of congress can do about it. Finance is changing, and it is changing quickly. The organizations and people who dominate this sector have been involved or are the ones getting involved now. Comments and backlash from politicians, like Rep. Sherman, are counterproductive and hinder innovation.
The Call Out
Just recently, President Trump’s Federal Reserve (Fed) nominee, Stephen Moore has announced the planned launch of a private cryptocurrency backed by the U.S. Dollar, except this situation is anything but normal, its missing something, and that something is the Fed. For the first time in history, people and organizations are openly aiming to compete with the Federal Reserve, which is remarkable on its own. In an interview with Fortune, Stephan Moore stated
“I’ve followed monetary policy for 30 years and always been troubled by the government monopoly on currency, which is unhealthy for markets,” Moore said “It’s very healthy for private competitors to challenge central banks over the money supply.”
Truly think about it, we are living in exciting times and if you’re reading this, odds are, you are one of the lucky few who can fathom the concept.
Earlier this year, Facebook, the world’s largest social media networking service announced plans to integrate cryptocurrency into the platform. Right off the bat, the United States Government put their foot down, or at least they’re trying to. After immense pressure and scrutiny, many companies that were once backing the project had found themselves being essentially forced to abandon the Libra foundation.
Not long after Facebook announced its plans, China made it very clear that they have every intention to implement their own digital currency as soon as possible. Crypto has gained a lot of popularity, in part because people can “ditch” banks and remain in control of their finances, all without risking the possibility of any 3rd party intervention. China, however, plans to use the technology as a form of authoritative power giving them access to citizens' data which was once inaccessible.
This monetary rebuttal made by China should be taken more seriously, especially by Congress, but they are too busy worrying about “Zuck Bucks” to pay any attention to, what may be one of the most important times for currency since the end of the gold standard. Like I have said before, I'm not here to politicize anything, but many of these politicians have shown blatant ignorance on this situation. For example, Mark Zuckerberg was testifying before congress when none other than Rep. Brad Sherman (D) stated.
“Let’s be clear. You are going to make powerful burglary tools and let your business partners commit the burglary. You are going to, with all the power of Facebook, try to create a new currency. You call it Libra, but you are the person behind it, and that’s why I call it ‘Zuck Buck,” Sherman said “The U.S. dollar is an excellent currency as a means of account. It serves all the needs except that it’s really bad for tax evaders, drug dealers and terrorists. That unmet need can be met by cryptocurrency.”
With all due respect Brad, but that sounds eerily similar to what the government and the Federal Reserve have been doing with the U.S. dollar for years.
Rep. Shermans comment shows how truly worried some of these politicians are. They fear to lose the U.S. dollar reserve status, but this time, they can’t topple the government that poses a threat, reason being, its U.S. citizens and people abroad, instead of Muammar Gaddafi who is going after the petrodollar.
The Wake-Up Call
Regardless of your position on the government and the dollar, one thing is for certain, this is and will be the future of currency. Lawmakers should dedicate more time working with businesses, instead of trying to shut them down. Valuable time, money, and resources are used to fight what’s already inevitable, but their effort would serve much better working as a team instead of holding onto lost hope. If lawmakers continue down the path of denial, they will falter a highly lucrative and very important head start on what's to become the future of currency.