Yesterday the CEO of Facebook, Mark Zuckerberg appeared before Congress to answer questions, predominantly on Libra, their planned cryptocurrency. Congressman Brad Sherman took the opportunity to bash cryptocurrencies such as Bitcoin, saying that they could pose a threat to the US Dollar.
Cryptocurrencies Could Be Harmful To The U.S. Dollar
During the hearing, Congressman Sherman was quick to address the challenges that cryptocurrencies such as Bitcoin could introduce to traditional fiat currencies like the US Dollar.
According to him, cryptocurrencies present a potential threat to the U.S. dollar and its financial status as “the sole reserve currency in the world.” He continued in the same direction, stating that “cryptocurrency either doesn’t work, in which case investors lose a lot of money, or it does achieve its objectives perhaps and displaces the US dollar…”
He also pointed out a report by RAND which shows that criminal activities might adopt crypto payments more in the future, thus increasing their efficiency. He continued with a statement about the protection that the U.S. dollar provides in this manner.
“For the richest man in the world to come here and hide behind the poorest people in the world and say that’s who you’re really trying to help – you’re trying to help those for whom the dollar is not a good currency: drug dealers, terrorists, and tax evaders.”
Sherman has called previous actions against cryptocurrencies as well, urging Congress to consider banning all of them earlier this year.
Despite the negative nature of Sherman’s views on Bitcoin, it might actually be considered as a confirmation that the largest cryptocurrency could be an alternative for the U.S. dollar.
In Cryptocurrency’s Defense
Zuckerberg offered his opinion on the whole matter of blockchain innovations and the risks of missing out. He said “while we debate these issues, the rest of the world isn’t waiting. China is moving quickly to launch similar ideas in the coming months”. He was referring to the country’s upcoming launch of its own state-backed cryptocurrency later this year.
The accusations that criminals are mostly using cryptocurrencies have been wandering around for some time. However, a previous report shows that most criminal activities are still carried out with fiat currencies. The report says that even though a change is noticed with new technology, “money-laundering schemes detected by law enforcement are still largely characterized by traditional techniques, in particular, the use of cash”.
Apparently, not all Congressmen agree with Brad Sherman. Tulsi Gabbard, serving in the 2nd district of Hawaii, Robert Goodlatte – former U.S. Representative, and the current governor of Colorado – Jared Polis, have all been reportedly purchasing cryptocurrency assets.
Featured image courtesy of Flickr