U.S. House Representative Tom Emmer believes that Bitcoin is here to stay and even sees a silver lining for crypto in the wake of the pandemic.
Hocus Pocus Dollar
In an interview on the Pomp podcast, U.S. congressman Tom Emmer discussed monetary policy for the world’s largest economy. Speaking with Morgan Creek digital co-founder Anthony Pompliano, Emmer criticized the federal reserve for printing money not even backed by paper bills.
Since the dollar went off the gold standard in 1971, Emmer exclaimed that the fed is simply creating debt which is just:
“hocus pocus… and all they’re trying to do is protect themselves.”
Likewise, he characterized the Treasury’s policy as dangerous as it would devalue the dollar. Emmer believes that digital currencies will inevitably hold a place in monetary policy.
“We have people who are visionaries and look beyond… or you’re going to have a catastrophe that forces it to happen.”
The republic congressman highlighted that Satoshi released Bitcoin in the wake of the 2008 financial crisis. In other words, if that innovation came out of financial difficulty, there should be opportunities for growth. Importantly, he believes that disenchanted citizens are looking for a change.
Dangers of Centralization
Representative Emmer, a chair of the Congressional Blockchain Caucus, is concerned most of all about the government’s manipulation of the currency. Not surprisingly, he’s afraid that the people making policy decisions are motivated by greed.
That is to say, the politicians in control aren’t concerned about the U.S. economy in the long run. “This is why I don’t like centralized control,” the congressman said. He drew a parallel between tight government control of monetary policy and China’s handling of the pandemic in Wuhan.
“When COVID was in full bloom in China, the government basically shut everybody down…If you lived in Wuhan, you couldn’t get a ride out of Wuhan to another city. You couldn’t go get some groceries.”
Government control of money is a slippery slope into government control of everyday life. Mr. Emmer describes these polices as stealing not only from his generation’s kids but his grandchildren and great-grandchildren too.
He also pointed out that even in poorer economies, such as the slums in Kenya, people are familiar with electronic payments. In contrast, U.S. citizens still use cash. Moreover, the traditional fiat system, he explains, is inadequate. Some kind of decentralized currency must arise.
Bitcoin Is Not the Problem
The Minnesota congressman expressed concern about how his colleague lawmakers view Bitcoin. Many of them hear bitcoin and still think Silk Road, the defunct illegal darknet marketplace.
He believes that the media misleads the public about security issues, such as the recent Twitter hack. That was a security issue with Twitter, not Bitcoin, he said. “Bitcoin isn’t the problem, centralization is.”
The Office of the Comptroller of Currency recently approved federal charter banks to hold custody of Bitcoin, so things are looking up for crypto. Emmer believes that young people will find a way around the current political issues preventing currency innovations.
Bitcoin is here to stay, whether or not U.S. lawmakers embrace it.
“Bitcoin will always follow the path of least resistance,”
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