Governments Should 'Leave Crypto Alone', Says Editorial Director from American Institute for Economic Research

in #cryptocurrency6 years ago

Jeffrey Tucker, a well known economist and the editorial director of the American Institute for Economic Research (AEIR), urges governments and central banks to let go of trying to control the crypto world or trying to create their own state-backed cryptocurrencies. He suggests they focus on what they've been doing: fiat, gold and the banking system.


flickr/Gage Skidmore, CC BY-2.0

In his recent editorial, Tucker points out how the state has monopolized currencies which directs all commercial traffic and controls economic life. Speaking in disfavor of the state meddling to try to compete in the free marketplace of cryptocurrency, he says:

I’m not a believer. They won’t compete in the marketplace. They might achieve the opposite of the stated goal. Truly rivalrous competition is just now starting to exist in a sector long monopolized by governments. More than a century ago, most government in developed economies created central banks to manage an official currency, directing all commercial traffic through its portals as a way of controlling economic life. It was the end of currency competition and independence in the banking industry.

Government control of currencies led to "world wars, depression and inflation, enormous government indebtedness, and the rise of leviathan states" that printed their way to domination and wealth. Tucker recognizes the potential of decentralized-ledger technology to show a free market competition in the marketplace to see what a real currency can look like.

Cryptocurrencies and blockchain technology can bring about an end to the currency monopolies exerted by centralized governments. Tucker laments about how the government complains about anti-competitive behavior int he crypto sector, while it has long held an authoritarian control and prevented competition. He notes that with all the choice out there, even though some don't like it, it's typical of a real free market entrepreneurial endeavor that has a "true trial-and-error culture ".

Tucker praises crypto as the "most exciting thing in money and finance on the planet". Governments have no business putting their restricting controlling hands on something that can change the world and stifle it's potential. Intervention would ruin the progress and potential:

Intervening will only result in more costly regulation and probably end up setting back the cause of genuine competition.

The best option for governments is not to create crypto liek the European Union is trying to do with the ECB Coin. They should try to "reinvent the wheel", instead should be "enabling light-touch regulatory environment to allow such innovations flourish on their own."

He's very much in favor of the free market approach to crypto, suggesting the EU "reform the European financial system and increase competition through deregulation and reduced regulatory barriers to entry". He events wants a stop to the fiat system and a return to the gold standard. This is how governments should use their power, by not interfering with the crypto market.

In closing he says:

When the private sector is innovating, government and central banks should leave them alone. And an even better rule: if you didn’t invent it, and you made no contribution to making it more valuable, you can’t regulate it either.

I think he's one of the most reasonable mainstream economist to speak on crypto. Usually you hear the old school financial "experts" bashing bitcoin or the cryptocurrency and blockchain technological and economic breakthrough and potential, but not him. That's a welcome change in my book, and hopefully more mainstream people listen to what he has to say.


Thank you for your time and attention. Peace.


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I’m not sure government regulations are what’s causing this crash right now but it’s getting carried away. Not sure why people are selling at these levels it’s ridiculous

Everyone knows that, even the EU. But the truth is that even though lobbying isn’t legally allowed in the EU, money speaks.

And as such, a body like the EU, will always resort to “regulations exist to protect our citizens”. The EU has actually done well in that department in recent years and implemented truly high standards, especially for a body of so many diverse nations. Sadly enough tho that has also meant too much red tape.

Personally, I’m fine with AML/KYC regulations. And if somehow possible with a minimum of regulations even a protection against pump/dump. I don’t care about the roller coaster but less industry knowledgeable people would go insane over their investments and as a result, combined with MSM FUD and FOMO mix, it would deter from mainstream adoption.

I agree with regulations against poisons, toxins or whatever being used in our environment and food. It would also be good to prevent people from manipulating a market, or apply consequences when they do, as the big players doing pump and dump widens the gap of haves and have nots. Whether that should be government though... meh :P

@krnel, Yes, that's really important means, Crypto doesn't need the intervention of any Centralisation for sure.

Crypto is future for sure and no matter what in my opinion Crypto will only going to move forward.

First of all people should change their mind first because they have really mixed mindset means they are standing in the middle means in a position where they want to try one step here and one step their.

And many were waiting for the ETF but for sure, Bitcoin and Crypto Sphere doesn't need it and it can move forward more effectively without it.

Wishing you an great day and stay blessed. 🙂

ETF will boom crypto. Meanwhile, because it's not accepted,ppl are selling like fools.

That's true, people are forgetting the true need of Decentralisation and still depending upon the action of centralised decisions. 🙂

Of course Tucker is right, but nobody in government is going to listen to that. Four of LedgerX's top execs and five of its lobbyists used to work in the CFTC. They've been laying their groundwork for a few years already.

At least the govt stooges aren't in all the chains...

Indeed governments SHOULD leave cryptos alone. However sadly nothing stays pure or even the same forever. Things get diluted and if the powers that be see an opportunity to make money off of money through manipulation, taxing or other controls, they will. Bitcoin futures have been manipulated for some time now. Thanks for sharing @krnel.

Things change indeed. Futures are something that shouldn't even exist. Gambling in markets shouldn't be allowed. It's a big manipulation.

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Uncomplicated article. I learned a lot of new things. I signed up and voted. I will be glad to mutual subscription))))

Hey @krnel.
I have resteem your post. this article needs to be known by them. I hope you are happy to hear it.

Very nice article! Thank you very much for all your very good effort!
Keep well!

Cheers.

Goverment is big player. We have to count on their presence to be innovative and perform better than conventional system.

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