Former Republican congressman and presidential candidate Ron Paul said, during his interview in a CNBC’s “Squawk Alley”, that he is in favor of cryptocurrencies and blockchain technology because he likes competing currencies.
Former Texas congressman said:
“I’m for the least amount of regulation. I don’t know what’s gonna happen to cryptocurrencies. I think it’s a great idea, and I only have one rule, no fraud.”
— Ron Paul (@RonPaul) July 15, 2019
Paul expressed his disapproval of governments forbidding crypto just because they are used to always have monopoly control over money and credit.
“Obviously, that’s why we have a Federal Reserve, instead allowing the market to operate. So it’s this thing, this desire to regulate and find out. But I I think that’s always because the government’s they’re afraid they’re gonna lose some tax revenues if they’re not careful. But I’m for for the least amount of regulation. I don’t know what’s gonna happen to cryptocurrencies. I think it’s a great idea, and I only have one rule, no fraud.”
Paul also drew several comparisons to the traditional asset gold. One way in which Paul appears to think gold is similar to crypto is that both assets are competing with fiat money. He said:
“Governments aren’t very tolerant of competition, and they’re not even tolerant with using the Constitution to compete with the fiat dollar. Because gold and silver, you can’t use it.”
The big question is, thinks Paul, can a cryptocurrency fulfill the requirement that you have a precise definition of the unit of account and that it’s consistent?
“When you look at all the different Cryptocurrencies available, you say, well, which one is going to survive? What happens if one goes down and the other goes up? So there’s a lot of questions, but I don’t know enough about the technology.
I think Blockchain technology is what we should be talking about, not crypto money, because that’s a question that’s going to be solved by the marketplace. And it has to contend with government regulations. So that’s no easy task.”
Let’s not forget that Paul back in 2014 expressed concerns about the backing of Bitcoin (BTC) and crypto in general, but adopted a pro-crypto attitude that is bearish on fiat money in the long run. He then said:
“I just don’t think the dollar is going to last. I don’t think any fiat currency lasts forever. They all self-destruct. Right now, the world is engulfed with fiat currency; they’re all paper currencies. That’s one of the other reasons the dollar holds up: What are you competing against, the euro and the yen? The competition out there isn’t any good.”
Paul is a long-time proponent of winding down the Federal Reserve and radically restructuring the way US dollar is issued. Many cryptocurrency supporters hold such beliefs. The most vocal opponents of cryptocurrency have been liberals so far.
People like Ron Paul are obviously well aware of the cryptocurrency potential as well as the blockchain’s. However, it is still not known how much power exactly the pro-crypto lobby could hold. One thing is sure – after all the hatred comments from Donald Trump, it’s good to know that we have a loud opposite side as well.