Bitcoin "Can not be manipulated by any government"

This week, following John F. Kelly's scheduled leave, US President Donald Trump chose pro-Bitcoin Mick Mulvaney to serve as the White House Chief of Staff from 2019.

According to the Washington Post editorialist Matt O & # 39; BrienMulvaney spoke about his support for Bitcoin (BTC) and in a speech by Mother Jones he praised the decentralized nature of Bitcoin as a consensus currency.

In 2016, Mulvaney reported that the Federal Reserve "actually devalued the dollar" and stressed that the exercise of such control is not possible with a cryptocurrency like Bitcoin that "can not be manipulated by any government".

Is it good for Bitcoin?

Having a high official profile and an influential member of the Trump administration is certainly positive for the long-term growth of the asset class.

While Mulvaney's neutral position vis-à-vis the cryptocurrency sector could influence the mentality of legislators and legislators in the United States to some extent, realistically it can not have a short-term impact on the roadmap implemented by commissions such as the US Securities and Exchange Commission (SEC) or the Commodities and Futures Trading Commission (CFTC).

The presence of pro-Bitcoin and crypto officials in the US government, however, could encourage other government officials to evaluate cryptocurrencies in a neutral manner and analyze the benefits that decentralized financial systems can bring.

In September 2017, the central bank of Finland, for example, published a research discussion that explicitly describes the inefficiency of regulation of blockchain protocols. The research concluded that Bitcoin is not and can not be regulated because the protocol operates according to strict rules implemented by the community supported by miners, developers and node operators.

The document said:

"Bitcoin is not regulated .It can not be regulated.There is no need to regulate it because as a system commits itself to the protocol as it is and the transaction fees it charges users are determined by the users regardless of the efforts of the The design of Bitcoin as an economic system is revolutionary and therefore deserves the attention and control of an economist even if it was not functional, and its apparent functionality and utility should further encourage economists to study this marvelous structure. "

As seen in the document of the Finnish central bank, it is possible that a central bank or government will analyze the structure of Bitcoin in a neutral way and create practical regulatory frameworks around it without limiting the growth of firms in the sector.

Currently, with regard to Bitcoin and even Ethereum, the SEC has clarified that Bitcoin is not considered a security under existing laws, essentially approving the infrastructure that surrounds it.

In recent months, SEC in the United States and other authorities in the global market have worked mainly on the integration of the rigid Know Your Customer (KYC) policies to eliminate money laundering in the cryptocurrency market.

Neutral evaluation

The existence of a senior government official in the US government that understands the purpose of digital currencies could have a lasting effect on the cryptocurrency industry and could encourage others to evaluate the asset class in a different light.

However, as reported by the New York Post on December 16, Mulvaney once described President Trump as "a terrible human being," triggering political analysts on how long the new chief of staff can hold office.

Mick Mulvaney Image of Gage Skidmore / Flickr

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