As the crypto market continues to be the longest running bull market in history, regulators are worried. However, regulators are generally concerned individuals who tend to fail to worry about what matters. Professor Saul Omarova recently gave a testimony before the Senate Banking Committee. Maintaining a pessimistic point of view, she raised concerns about cryptocurrencies which we will discuss in this article.
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Saule Omarova on Crypto
President Joe Biden’s nominee for Comptroller of the Currency warned about the US dollar facing a possible demise as digital private currencies take its place. Omarova is an out of the closet communist yet claims to be on team “Amercia!”.
However, the real issue lies in the fact that tech giants can and will seek control over these currencies. In that regard, decentralized or not, digital currencies will lose autonomy. It is possible for large institutions to simply buy infrastructures in an effort to dominate a currency.
“My concern is… we may end up in a situation where a large company, like a big tech company, might control all of the infrastructures through which the money that every American and every American business uses in their daily [lives].” Said Omarova.
Also, blockchain networks make it ridiculously easy for multinational companies to issue a cryptocurrency and Right now, crypto is a serious competitor for fiat currencies. Considering the massive marketing horsepower and developmental abilities of tech giants, these currencies will at some point circumvent US dollar.
“My concern is that in the system where a lot of private actors like Facebook can issue their own version of currency, that can potentially outpace and even displace the US dollar.”
Crypto Kills Fiat?
Crypto is at a new phase. It used to be hip, it used to be a cool little-known apparatus to make anonymous transaction. Currently, crypto is a $2.5 trillion-dollar market with serious players onboard. Subsequently, top regulators are seriously troubled by this emerging competitor.
On one hand, every single government succumbs to financial entropy as they print money carelessly. Looking at inflation chart in most countries, the trends are bullish as all hell. Long story short, fiat is predominantly controlled by governments who abuse their power over money. Crypto has the potential to take back control from fiat and it is surely going at it hard right now.
On the other hand, cryptocurrencies can be centralized and controlled. Bitcoin is not as autonomous as advertised by Trader Bros. Whales are a serious threat for investors as they maintain Batman-level control over the market. To make it worse, massive platforms such as Facebook can easily push their own cryptocurrencies into the stratosphere. In a sense, a vast majority of crypto does resemble private money from the wildcat banking era.
The point is, nobody feels bad for the decline of the fiat. In the meantime, crypto is growing too fast as an alternative with an uncertain future. Tech giants are already making big moves and showing very little signs of not being evil.
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