Congressman Kevin McCarthy has urged Treasury Secretary Janet Yellen and Federal Reserve Chairman Jerome Powell not to ignore Bitcoin the way they tried to. Believing it is the future, he insists, “I don’t want America to fall behind other countries.”
The government and the Fed shouldn’t ignore Bitcoin
GOP boss Kevin McCarthy spoke about Bitcoin in an interview with CNBC last week. Congressman McCarthy serves the 23rd district of California and is currently the Republican leader in the US House of Representatives.
He was specifically asked if he thinks Treasury Secretary Janet Yellen and Federal Reserve Chairman Jerome Powell have a good understanding of digital currencies, or Bitcoin, given their recent comments and the advice he has for them.
McCarthy, a longtime proponent of Bitcoin, said in July 2019, “I like Bitcoin” and the security of the blockchain technology behind it. The congressman reiterated his view on Bitcoin in 2019 and replied, “I was right then and I am right now.”
I think they tried to ignore it to make it go away. I think Jamie Dimon will tell you that he was wrong from the start. This is moving towards the future. You shouldn’t ignore it.
Jamie Dimon, CEO of JPMorgan, described Bitcoin in 2017 as a “scam” that is “worse than tulip bulbs”. His bank has come a long way since then. JPMorgan sees massive institutional demand for Bitcoin today and has launched a crypto investment product that tracks public companies with Bitcoin exposure.
Federal Reserve Chairman Powell and Treasury Secretary didn’t warm to Bitcoin. Powell said last week that cryptocurrencies are “vehicles for speculation”. He claimed that “they are not actually actively used as payment” despite a growing list of companies that accept them for payment, including Elon Musk’s Tesla. Finance Minister Yellen shares a similar opinion. It called Bitcoin a “highly speculative good” in February, claiming it was not “widely used as a transmission mechanism” and an “extremely inefficient way of conducting transactions”. Yellen also warned that cryptocurrency abuse is a growing problem, noting that cryptocurrencies are mainly used for illegal funding.
McCarthy also said in an interview last week that Treasury Secretary Yellen and Fed Chairman Powell “should not only learn more about bitcoin and cryptocurrencies, but that the base will continue to grow”. He went on to say:
This is something that those who regulate, those in government who improve policies understand what this means for the future.
The congressman stressed that “other countries are making progress in the field of digital currencies”. “I don’t want America to fall behind. I want the next century to be ours. That’s why I want to look ahead and not backwards and not keep my head in the sand, ”the legislature concluded.
What do you think of what McCarthy said about Bitcoin? Let us know in the comments below.
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