Since the beginning of the year, several countries, among which were Iran, Venezuela and Israel started talking about issuing the national currency.
Economist and Professor at the American Institute for economic research (AEIR) Jeffrey Tucker said the state of digital money — not the best idea. He advised governments to focus on the development of Fiat money and traditional banks. His words leads CCN.
Why regulate cryptocurrency
According to Tucker, cryptocurrency and the creation of infrastructure for it is the prerogative of private companies and governments should not interfere in this process. The prohibitions that apply in relation to the digital assets, contrary to the essence of cryptocurrency and cause great harm to the industry.
I do not believe that government cryptocurrency will compete in the market. The only thing that you can use them to achieve a monopoly, which is struggling cryptoanalysis. Only now the true competition begins to emerge in the sector, which has long been monopolized by governments. Thanks to the technology of decentralized accounting and some impressive innovations in the banking solutions — the technology works in a peer-to-peer network and requires no government intervention, no intermediaries, we begin to understand how it might look real choice in the field of currency.
Tucker believes that the expansion of the state-controlled monopoly Fiat currency in the last 100 years has led to world wars, economic crises, growing inflation, and increased the number of officials and bureaucracy.
The economist added that cryptocurrency is the most exciting idea in Finance on the planet, and the government’s interference in its development will result in the death of digital assets.
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