Known economist and editorial director of the American Institute for Economic Research (AEIR), Jeffrey Tucker, called on governments and central banks around the world not to create national crypto accounts. What in exchange for this? They are to focus on improving the current fiduciary and banking system.
In an article published by AEIR, Tucker said that the growing popularity of cryptocurrencies is the domain of private innovation and enterprises. Governments should not deal with this field.
Speaking about efforts to regulate cryptocurrencies and subjecting them to strict government control, Tucker is of the opinion that such efforts are in contradiction with the declared goal of block-based currencies. Explaining this point, he forecasts the potential “end of monopoly” in the “sector long monopolized by governments.” The economist emphasizes that the new technology “does not require neither government nor intermediaries”. In his opinion, now we are beginning to see what real competition on the money market may be.
According to Tucker, the growth of the state-controlled monopoly on money supply over the last century has led to two world wars, economic crises, constant inflation, huge public debt, and extensive government bureaucracy.
The most exciting thing
Cryptocurrencies, on the other hand, are “the most exciting thing about money and finances in the world,” in which rulers should not interfere.
– The intervention will lead only to more costly regulations and probably to withdraw the cause of real competition – he says.
Tucker also attacked potential national cryptocurrencies, stating that their existence would be pointless and potentially unrealistic. According to him, the way the authorities can express their support for Blockchain technology is not an attempt to invent a new circle, but only to create a regulatory environment that would allow such innovations to develop independently. Moving forward, he expressed his desire that European monetary authorities reform the European financial system and increase competition by deregulating and reducing barriers to entry. Above all, he called for a return to the gold standard instead of the current fiduciary system. All this would be in his opinion a much more effective use of regulatory power than an attempt to enter the market for cryptocurrencies.
He also criticized the Venezuelan Petro, or “non-cryptocurrency” supported by the state. He described it as an oil-powered loan instrument that exists only to circumvent US trade sanctions.
To sum up his thoughts, he said:
“When the private sector innovates, the government and central banks should leave it alone. There is a better rule: if you have not invented something and you have not contributed to making it more valuable, you can not regulate it. ”