US Congressman: Cryptocurrencies Must be Banned

July 20, 2018

During the meeting of work group at the US House of Representatives Financial Services Committee a democratic congressman Brad Sherman (California) claimed, he finds total ban on mining and any operations with cryptocurrency within the country as absolutely reasonable.

The congressman believes, cryptocurrency is used and can be used to evade paying taxes and skirt US sanctions. The only way to handle this is to forbid any interaction with cryptocurrency for all citizens of the country.

This position raised criticism by the experts in the know of the issue. They noted that Sherman’s political activity is primarily facilitated by Allied Wallet, the company processing credit cards. The organization is a part to traditional financial industry so their wish to fight with grave risks cryptocurrencies may cause is obvious: they threaten the company’s financial results.

Norbert Michel, the director of the Center for Data Analysis at the Heritage Foundation, acted as a referee during the debates. He questioned Sherman’s statements about cryptocurrency and noted, some criminal may really use cryptocurrency for illegal activity, but, at the same time they use cars and airplanes. So forbidding the latter ones may not seem justifiable.

Dr Eswar Prasad, senior professor of Trade Policy at Cornell University, noted, advantages of cryptocurrency are going to influence the financial sector positively which may outbalance their criminal side. As he put it, payment systems can be improved and this will simplify transaction procedures and make them more effective. Prasad also claimed, he cannot imagine that the US national currency will be replaced with cryptocurrency. Yet at the same time he calls for the Federal Reserve not to obstruct and stop people from using them as preferable exchange means.

While drawing conclusion to the session the chairman Andy Barr said, that cryptocurrencies “will continue to have a greater and greater impact on our financial system” so the Committee will have to review the issue later.

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