US lawmakers’ stance on cryptocurrencies is outdated and bordering on negligent, according to Nigel Green, the boss of financial advisory organisation, deVere Group.
He was speaking after two days of congressional hearings this week to discuss Facebook’s planned digital currency, Libra. Members of the US House financial services committee grilled Facebook executive David Marcus and displayed deep scepticism over the social media giant possibly entering the banking world following various privacy scandals.
OMG @RepKatiePorter is shocked SHOCKED that fractional reserve banking occurs & absolutely positively never ever with 100% certainty wants @facebook @Libra_ to engage in fractional reserve banking…AND WANTS THE FDIC TO ENFORCE THAT!! 🤪🤣😂😩 Ignorance in Congress is staggering
— Caitlin Long 🔑 (@CaitlinLong_) July 17, 2019
“Some of their comments in the congressional hearings suggest that they think cryptocurrencies are a passing fad. That is delusional,” he said. “The demand for digital, global, borderless currencies is only going to increase. This is inevitable as the digitalisation of our economies and our daily lives grows further and picks up pace further still.”
And because demand is set to soar over the next few years as retail and institutional investors pile into crypto, lawmakers now need to embrace them and bring them fully into the mainstream financial system with proper and robust regulation, he added. It is bordering on negligent not to do so for three key reasons, Green believes.
First, it would provide further protection for the growing number of people using and investing in cryptocurrencies. Second, unless the US leads the way in the digital currency revolution, other countries – with perhaps counter values to those of America – will control it and it would be hard to ever take back that control. And third, there are enormous potential opportunities for higher economic growth by embracing cryptocurrencies.
Taking down Trump
The deVere CEO also slammed Donald Trump last week when the US President criticised Bitcoin.“Standing on the sidelines, or worse looking backwards, on the issue of cryptocurrencies – which are redefining and reshaping the financial system – is a baffling approach for the leader of the world’s largest economy to take,” Green commented.
“Digital currencies are the biggest innovation in payment systems in many decades. Facebook’s jump into the sector is a clear indication of the direction of travel in this regard and lawmakers must not put their heads in the sand and/or attack – that is futile and counterproductive. Instead they must work alongside stakeholders to make the market stronger still as investors continue to dive into the likes of Bitcoin, Ethereum, Ripple’s XRP and Litecoin,” he concluded.
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