The prominent economist and editorial director of the American Institute for Economic Research (AEIR), Jeffrey Tucker, has urged governments and central banks around the world to give up the idea to create state-supported cryptocurrencies and instead focus on the soundness of the fiat system and the banking system.
"Leaving Crypto Alone"
In an editorial published in AEIR, Tucker said that the growing scene of cryptocurrency and related infrastructure is the reserve of private innovation and enterprise and that governments should not dabble in this field.
Speaking of efforts to regulate cryptocurrencies and bring them under government control strictly, Tucker has opined that such efforts run in direct contrast to the stated goal of cryptocurrencies, which is the end of a monopoly on money.
Explaining this point, he said:
"I am not a believer, they will not compete in the market, they could reach the opposite of the declared goal: the end of the monopoly. exist in a sector that has long been monopolized by governments … Thanks to the technology of a decentralized register and to some impressive innovations to create digital money and banking solutions, technology works on a parity basis and requires neither governments nor intermediaries to operate – we are beginning to see what could be the real choice in currency. "
According to Tucker, the rise of the state-controlled monopoly on the money supply in the last century is what has led to world wars, economic depression , constant inflation, huge government debts and sprawling government bureaucracies dependent on quantitative easing for finance and influence.
Cryptocurrency, he says, is the "most exciting thing about money and finance on the planet", so governments have no interest in getting their hands in and strangling the story of emerging success or by pontificating on any of its perceived shortcomings, including its wide range of available choices and its failure rate that far exceeds that of small businesses.
"Intervening will only lead to more expensive regulation and will probably end up downplaying the cause of real competition."
Controversy on the ECB coins
Tucker also attacked the cryptocurrency "ECB money" programmed, pushed by the European Central Bank (ECB), stating that such a move would be useless and potentially unworkable. Cryptocurrencies claimed by the state said, would be a remedy for a problem that does not exist. According to him, the way in which the authorities express the support for blockchain technology is not to try to reinvent the wheel, but simply to create a regulatory environment that allows light contact to allow these innovations to flourish on their own.
the desire for the European monetary authorities to reform the European financial system and increase competition through deregulation and reduce regulatory barriers to entry. In particular, he asked for a return to a gold standard instead of the current fiat system. All he said would be a much more effective use of regulatory power than the attempt to elbow in the cryptic market.
He also escaped the state-planned Venezuelan crypt – the petro – describing it as "not a cryptocurrency, but rather a petroleum-backed debt instrument fluctuated just to circumvent the US trade sanctions." This and other encryption attempts supported by the government, says Tucker, will never work because the cryptographic market rewards the coins that attract the desires of the market, not those official imposition.
Summarizing his thoughts on having the government in cryptography, he said:
"When the private sector is innovating, the government and central banks should leave them alone, and an even better rule: if not # 39; you invented and did not help to make it more valuable, you can not even adjust it. "
Featured Image by Gage Skidmore / Flickr
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