There has been a lot of worry in the United States as of late that the government is looking into a ban of bitcoin and/ or cryptocurrencies.
Could a Ban of Bitcoin in the U.S. Really Happen?
The concern began a few weeks ago when President Donald Trump tweeted his dislike for cryptocurrencies, saying that they “weren’t real money” and that their values were “based on thin air.” In addition, Treasury Secretary Steven Mnuchin claimed that heavy regulation was coming in the U.S. for digital assets, and Libra has been getting the evil eye from Congress since Facebook first submitted its plans for the currency.
With all this in mind, it’s hard to assume that the U.S. is friendly or trusting of crypto, but many analysts say enthusiasts in the U.S. don’t have much to worry about, as it would be very difficult for American regulators to initiate a ban of cryptocurrencies anytime soon.
Interestingly, this isn’t just the sentiment of cryptocurrency traders and experts, but of the lawmakers themselves. The U.S. Senate Committee on Banking, Housing and Urban Affairs recently held a hearing on blockchain and cryptocurrency regulation. It was here where Chairman Mike Crapo - a republican representative from Idaho - stated that the U.S. would not be successful if it were to try and instill a cryptocurrency ban.
If the United States were to decide - and I’m not saying that it should - if the United States were to decide we don’t want cryptocurrency to happen and tried to ban it, I’m pretty confident we couldn’t succeed in doing that because this is a global innovation.
The idea is that blockchain and cryptocurrencies are being developed and utilized all over the world. Thus, the United States would never be able to oppress all future innovation in this department and granted enthusiasts within the U.S. really wanted to get their hands on these assets, they ultimately could with little or no supervision through other regions.
A Lot of People Feel This Way
CEO of Circle Jeremy Allaire shares this sentiment. He says that bitcoin and its crypto cousins have given birth to an entirely new reality that’s designed to shift focus and power from government bodies and back into the hands of private equity traders, and that it cannot be controlled the way traditional fiat can. He says:
I think the challenge that we all face with this is some of these cryptocurrencies - they’re literally just a piece of open-source software. There’s nothing else. It exists on the internet, it’s open-source software. Anyone can implement it, it runs wherever the internet runs, and these have a monetary policy where these assets are algorithmically generated… That is a challenge that every government in the world now faces. That money, digital money, will move everywhere in the world at the speed of the internet.
Cryptocurrency is a digital currency that uses encryption (cryptography) to regulate the generation of currency and verify the transfer of funds, independently of a central bank. Cryptography is the practice and study of techniques for secure communication in the presence of third party adversaries.
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