The crypto industry took a beating again on the floor of the US senate, with international lawyer, Mehrsa Baradaran suggesting that cryptocurrencies are no solution for financial inclusion and equity in banking.
In a statement published on the senate’s website, Baradaran explained that issues constantly being raised about inequality and inefficiency in finance that Bitcoin and other cryptocurrencies are trying to solve can be resolved through policy and not technology. Baradaran went to state that issues to do with financial inequality and inefficient finance, ought to be discussed in the senate chambers, and not in a tech startup or an anonymous white paper. She concluded by saying;
“While I share many of the cryptocurrency industry’s concerns with respect to failures of the banking industry, I do not believe cryptocurrency is the best solution to the problems of financial inclusion and equity in banking.”
In response to Baradaran, senior market analyst at eToro Mati Greenspan was quick to point out that the Federal Reserve was incentivized to keep its power, not to boost financial inclusion, and no amount of lobbying can change that. According to Mati Greenspan;
“The only way to get them to change is to disrupt their business model. By supporting Bitcoin or other independent forms of money, they will be forced to compete with it. Only then will you get the inclusion you seek. Capitalism 101!! The Fed has a monopoly.”
The crypto conversation raged on in congress with Circle CEO Jeremy Allaire, making his much awaited testimony before congress. In his remarks, the Circle CEO asked congress to regard virtual property as its personal asset elegance.
“Congress must undertake nationwide insurance policies that outline and determine virtual property as a brand new asset elegance and expand suitable laws and exemptions for virtual property. This may occasionally require law that most likely adjustments our current commodities, securities, and banking regulations, amongst others.”
The head of the Blockchain association Kristin Smith had backed Circle CEO Jeremy Allaire, before he made his submissions before congress. Smith had backed Allaire as the best person to represent the association in congress, since Circle knew the issues first hand. Circle has in the recent past secured a number of regulatory licenses and restricted US investors from trading certain assets, but nevertheless had to lay off staff and move some of its business offshore due to the current regulatory structure. In his testimony Allaire clearly pointed out that Blockchain technology would help regulators better track attempts at money laundering.
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