It’s long been known among people in the crypto industry that Bitcoin (BTC) and cryptocurrencies threaten the existing financial system, including central banks and the Federal Reserve, as they could potentially strip away their power.
Now, as Bitcoin shows persistence and strength with a recovering price that has already doubled since the beginning of the year, the threat is becoming more real.
Speaking on this matter is US Congressman Brad Sherman, who recently proposed a bill to ban Bitcoin and crypto due to the threat they pose to US international financial power.
Today in Congress Rep. Sherman called for a bill to ban all cryptocurrencies.
This is why Coin Center is needed in DC now more than ever. pic.twitter.com/jgikm7z8bI
— Coin Center (@coincenter) May 9, 2019
Bitcoin Threatens To Take Power From the US Federal Reserve
During a meeting at the House Financial Services Committee last week, Sherman explained the threat Bitcoin has on the US’s international power.
“An awful lot of our international power comes from the fact that the U.S. dollar is the standard unit of international finance and transactions. Clearing through the New York Fed is critical for major oil and other transactions. It is the announced purpose of the supporters of cryptocurrency to take that power away from us, to put us in a position where the most significant sanctions we have against Iran, for example, would become irrelevant.”
Sherman appears to understand the power of Bitcoin very well, as it can be moved all around the world beyond the control of governments and law enforcement.
He’s clearly frightened by this potential for mass disruption, which is why he is urging the US Congress to join him to ban crypto so it won’t disempower the United States’ global financial sovereignty.
Banning Bitcoin Won’t Work, It’s “Nearly Impossible to Enforce”
Following Sherman’s attack on Bitcoin, Anthony Pompliano, major Bitcoin proponent and founder of Morgan Creek Digital Assets, said any such laws would be nearly impossible to enforce and would only drive more Bitcoin adoption.
Following these statements, Pompliano wrote a blog post highlighting the implications of Bitcoin on the traditional financial system and Sherman’s realizations of its potential.
“[Sherman] sees the increased probability that we are moving to a world where non-sovereign currencies are the default and it sounds like he is scared… Mr. Sherman realizes that the United States, and other countries with major currencies, will lose considerable power if they are no longer in control.”
Pomp says the Congressman’s understanding of Bitcoin’s technology is accurate, but what he fails to understand is that trying to ban ownership of decentralized currencies is nearly impossible.
How will the US government adapt to the potential disruption Bitcoin has on their international power? Let us know what you think in the comment section below.