The irrelevant House Financial Services Subcommittee of the United States convened today to discuss monetary policy with regards to cryptocurrencies and Bitcoin. The bitcoin price rose to $7600 just before the hearing and came down a bit throughout the hearing dropping $100 throughout the speaking of the Democrat on the subcommittee who has no clue about cryptocurrencies.
The panel that was chosen were mostly Washington insiders and professors. A Ripple (R3? same thing) guy, a guy from the Heritage Foundation, a legacy financial policy professor and an old legacy financials guy.
The Ripple guy gave what you would expect from a Ripple guy, suggesting the Fed create their own centrally controlled cryptocurrency. Or maybe a currency like Ripple can be used by the banks. During the question period he mentioned that Bitcoin is money, but not a very good one and that there is nothing wrong with our current system.
The Heritage guy was the only panelist that had some understanding of crypto, even though he went back in time to 2015 when it was all about the underlying blockchain technology, not Bitcoin. But he did say that the US needs to get rid of capital gains on crypto spending which, if anything was heard during this hearing is the most important thing to happen. He at least acknowledged that centralizing a cryptocurrency under control of the Federal Reserve wouldn’t work. During the question phase he informed the subcommittee that adoption would decrease bitcoin’s volatility.
The legacy finance professor stated that the US dollar has backing. He mentioned that money is created by banks. And that Bitcoin was not getting any traction as a medium of exchange (but he likes Tether!). That pretty much tells you all you need to know about what he said to the subcommittee.
The old legacy finance guy was a bit more knowledgeable about money even though he is still stuck in the years before crypto. He talked about how private currencies have existed before, but mentioned that over time money has become more centralized (something the Bitcoin community needs to ensure does not happen to BTC). His statement was that money will not likely become decentralized due to cryptocurrency. But he also mentioned that a central bank cryptocurrency was a horrible idea. And that an increase in centralization should be avoided.
Overall they tried to come up with some centralized Federal Reserve deposit account and picture how that would work. At least the Heritage guy said that you could just do that with a database.
This Democrat, Sherman, came on and pretty much revealed why he was a member of congress instead of being smart enough to have a job in society when he kept repeating that Bitcoin was only for avoiding taxes and committing crimes. He asked the old legacy finance guy what solutions Bitcoin was trying to solve other than committing crime and the old legacy guy couldn’t think of anything. Here’s a solution that the legacy idiots hadn’t thought about, it does not allow the endless printing and devaluing of money that is used to fund wars and pay for idiots like Sherman to enforce their idiocy on the American people via force.
In the end the chairman of the subcommittee concluded that crypto and digital currencies are here and they are growing and that they would certainly need to revisit this topic once again at a later time.
A fairly inconclusive hearing that likely changed nothing. They had no cryptocurrency experts on their panel of experts on cryptocurrencies which could have actually cryptosplained to them why their tired worthless fiat currency should be flushed down the toilet and replaced by the new form of money that everyone will soon be using around the world. But what do you expect from Washington? We will continue this revolution without the need for any subcommittees or permission from governments.