It’s a strange feeling when a phrase from a U.S. president’s tenure is revisited, especially in a discussion about cryptocurrencies. Nonetheless, “If you are not upset … you are not paying attention …” is the mantra for today, as the U.S. government is increasingly attempting to use their position of power to intervene in the crypto industry.
Cryptocurrency has seen a surge in popularity in recent years, as people are recognizing its potential to sidestep the issues of traditional banking including inflation and currency manipulation. With the release of President Joe Biden’s “Economic Report” in conjunction with the Federal Deposit Insurance Corp going after Signature Bank for their crypto holdings, it’s obvious this administration views cryptocurrencies with extreme suspicion.
2008 saw the Great Financial Crisis and a massive bailout of banking institutions, spending $245 billion of US treasury funds as a result of printing money, driving inflation and ushering in a recession. Thousands of college graduates were unable to find employment, a situation that could be repeating itself this year with the Fed’s $300 billion balance sheet expansion.
Cryptocurrency was born of this crisis, and has the potential to be an alternative to the dollar, viewed by many to be inflationary and unreliable. Keiko Yoshino, executive director of the Puerto Rico Blockchain Trade Association has nothing but praise for crypto, having recently expressed “crypto is resistant to inflation, can be stored securely on our phone, and sent to anyone at any time without a fee.”
But why is the government so adamantly against it? To put it simply, power is at stake. Cryptocurrency offers a way for people to transfer and store value without the need for a centralized system or government control. This is what Benjamin Franklin meant when he said “Those who would give up essential Liberty, to purchase a little temporary Safety, deserve neither Liberty nor Safety.”
The power to fully control a nation’s money supply gives the government formidable power over its people’s lives, both financially and otherwise.
Despite the disruptive power of crypto, governments should not be stifling its existence, nor should banks and exchanges be discouraging its adoption. Cryptocurrency does not have to be our official currency tomorrow, but it should be explored as an opportunity to seek out financial freedom.
It’s understandable why people would want to take measures to protect their wealth from potential inflation, so the best way to ensure everyone’s welfare is to develop a sensible and universally adopted regulatory framework for cryptocurrency. Regulating crypto is far better than banning it, giving all parties the freedom to explore its capabilities, manage risks, and innovate without the fear of censure.
So, yes – if you are not at least somewhat upset at the U.S. government’s power-grab and blatant hostility towards cryptocurrency, then you may not be paying all that much attention.
But don’t despair – even in a seemingly dark and oppressive climate, meaningful, sensible changes in the regulation of cryptocurrency are entirely possible – and will ensure everyone’s financial liberties in the long run.
Upset or Unaware? Waking Up to the Crypto Crisis – Crypto Challenges the U.S. Government’s Power Grab
It’s strange when an old phrase from a former U.S. president is brought up in a discussion about crypto, but that’s the sentiment currently surrounding the industry, as the U.S. government is attempting to use their power to clamp down on the crypto industry.
Bolstered by the success of Bitcoin and its growing popularity, many have been drawn to the cryptocurrency market in hopes of avoiding the pitfalls of traditional finance, including inflation and currency manipulation. However, the US government’s increasing concern over cryptocurrency has been palpable with the release of President Joe Biden’s “Economic Report”, and the Federal Deposit Insurance Corp’s move towards Signature Bank for its crypto holdings.
It was the Great Financial Crisis of 2008 that kickstarted the current state of global finance, with the U.S. Treasury spending approximately $245 billion to “bail out” banks. This injection of money resulted in a recession and drove up the inflation rate – a situation that could repeat itself this year.
Fortunately, cryptocurrency has been born of this crisis as an alternative to the unreliable and inflationary dollar. Keiko Yoshino, executive director of the Puerto Rico Blockchain Trade Association believes “crypto is resistant to inflation, can be stored securely on our phone, and sent to anyone at any time without a fee.”
The government’s attempt to clamp down on the crypto industry may not be driven by the traditional reasons of crime or financial speculation, but in its disruptive potential to remove their absolute power over a nation’s money supply, thus removing their power over people’s very lives.
However, this doesn’t have to be viewed as an all-out war, with governments and central banks stifling its growth and preventing people from buying it. Instead, the opportunity to explore cryptocurrencies should be embraced and regulations should be developed to ensure everyone’s financial freedom. After all, it’s understandable why people want to take measures to protect their wealth from the potential of inflation.
It’s understandable to feel some level of upset at the U.S. government’s push to control the crypto industry, but in the end, it will be up to more sensible and inclusive regulatory measures to ensure everyone’s financial liberties.
