In an interview with Laura Shin, Patrick McHenry, the North Carolina Republican representative, said that Bitcoin is an important project with an immense future utility. He urges policymakers not to lump and classify this “very real, very important project” with Libra.
Bitcoin Different From Libra
Clarifying that his comments are not meant to disparage any project, it is McHenry’s view that a distinction must be made because Bitcoin is satisfactorily decentralized and still in its early days.
“I think Libra has opened a lot of new people’s eyes about the value of cryptocurrency. Libra is not a cryptocurrency, however. And we need to stop lumping it together with very real, very important projects that are out there like Bitcoin. The distinction between a wholly new financial invention like Bitcoin – I think that has enormous long-term value.”
Bitcoin Versus the USD
The debate around Libra is splitting policymakers. While leading blockchain developers insist that the Libra is not a technology but a political project, the views around Bitcoin are gradually changing.
For a long time, Bitcoin and cryptocurrencies have been labeled as facilitators for money laundering and terrorist financing, with the US President, Donald Trump weighing in and expressing his disdain for the so-called internet money.
In July, President Trump said he was not a “fan” of cryptocurrencies adding that they are not money and the US Dollar is the only dependable money that is stable and reliable.
“We have only one real currency in the USA, and it is stronger than ever, both dependable and reliable. It is by far the most dominant currency anywhere in the World, and it will always stay that way. It is called the United States Dollar.”
Trump’s comments were further reiterated by Brad Sherman, an anti-Bitcoin Congressman, who raised concerns that the proliferation of cryptocurrencies is a threat to the US Dollar’s dominance in the global financial system.
We Popped the Crypto Bubble in Q4 2017
Reports now emerge that elements from the Trump administration were architects of last year’s cryptocurrency winter. In 2018, Bitcoin slid to $3,200 while altcoins were disseminated as many cryptocurrency projects folded as prices fell.
The former head of the U.S. Commodity Futures Trading Commission (CFTC) Christopher Giancarlo revealed that the agency worked in cohort with the US Treasury and the SEC and the director the National Economic Council, Gary Cohn to pop the first bubble after the great Financial crisis of 2008-09 in a pro-market manner through the launching of Bitcoin Futures at the CME and the CBOE.