There is disagreement among the members of the American legislative body on how to counter crypto currencies. In particular, one member of parliament positions himself radically and calls for a ban on mining and crypto trade. However, one of the invited experts opposes this and puts forward a number of good arguments to Congress.
There had been some controversy in the US Congress Finance Committee on Wednesday. On the agenda of the meeting was the topic “The future of money: digital currencies”. While it is gratifying that American lawmakers are increasingly dealing with crypto currencies, the meeting also shows that there is still a long way to go before we understand crypto currencies.
Brad Sherman: Bitcoin evolution trading and Bitcoin mining banned in the USA
The democratic representative from the state of California, in particular, raved against Bitcoin evolution. He even went so far as to ban US citizens from buying or mining crypto currencies like in this review about the Bitcoin evolution. “Mining alone consumes electricity, which is taken away from other purposes and increases the country’s CO2 footprint. As a means of exchange, the Bitcoin evolution does nothing but facilitate drug trafficking, terrorism and tax evasion.” said Sherman’s devastating verdict.
Instead, the deputy is acting as an advocate for national state currencies, which he wants to protect from competition from the Bitcoin:
“The blockchain is a good technology, but it can also be used in conjunction with state currencies. Crypto currencies cannot do anything that state currencies cannot do. The US dollar is decisive for the strength of the US in the world. Without the US dollar, we could never have forced Iran to the negotiating table.”
The expert speaks: Good reasons for Bitcoin evolution
In contrast, Norbert Michel, director of the Centre for Data Analysis of the conservative American think tank Heritage Foundation, makes a statement about the Bitcoin evolution. He was part of a team of invited guests who were supposed to bring expertise to the round of deputies. Michel is in favour of promoting Bitcoin evolution technology and its applications rather than slowing them down.
“Yes, it is true that criminals used Bitcoin. But criminals have also used airplanes, computers and cars. We should not criminalise any of these instruments just because criminals use them”,
Michel commented on the accusations against Bitcoin.
Competition on the currency market could also stimulate business. The government should therefore treat all currencies equally and leave it to citizens to decide how they would like to pay their bills.
“This means that no particular form of money should be given a legal advantage and that all legal obstacles to the use of alternative forms of money should be removed. The abolition of capital gains taxes on purchases with alternative currencies, including crypto currencies and foreign currencies, would be an important step”.
Central bank coin not a good idea
Norbert Michel is also opposed to the idea of a crypto currency issued by a central bank. The big advantage of crypto currencies is their decentralization. This would be lost through dependence on a state-controlled central bank. This would give the state back its complete monopoly over the currency market – at the expense of the economic freedom of the individual.