Rep. Brad Sherman (D-CA) has demanded that cryptocurrency mining and buying should be banned.
He made the call during a public hearing on cryptocurrency, hosted by House Subcommittee on Financial Policy.
The hearing entitled “The Future of Money: Digital Currency” examined the extent to which the US government should consider cryptocurrencies as money, and the potential domestic and global uses for cryptocurrencies.
The California Democrat is of the opinion that U.S. citizens should be prohibited from buying or mining cryptocurrencies.
He warned about the possibility of misuse of the digital currrency by tax evaders and rogue states seeking to bypass U.S. sanctions.
Dr. Norbert J. Michel, who was one of the panelists, questioned the logic behind the concern over criminals taking advantage of the blockchain technology.
“Yes it is true that criminals have used bitcoin, but it’s also true that criminals have used airplanes, computers and automobiles. We shouldn’t criminalize any of those instruments simply because criminals used them.”
“Those components I believe are the main barriers to widespread adoption in the U.S,” according to Michel, who is Director of Center for Data Analysis, the Heritage Foundation.
Generally, there were no takers for the idea of a central bank digital currency (CBDC).
Alex J. Pollock, Distinguished Senior Fellow at R Street Institute, termed it as “a terrible idea – one of the worst financial ideas of recent times.”
Dr. Eswar S. Prasad, who is Senior Professor of Trade Policy, Cornell University, argued that cryptocurrencies have the potential to positively impact the financial services system, particularly the payments system, by making transactions much easier and bringing down the cost.
House Committee chairman Andy Barr concluded the hearing by noting that cryptocurrencies will “continue to have a greater and greater impact on our financial system.”
by Joji XavierRTTNews Staff Writer
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