Jeffrey Tucker, Editorial Director for the American Institute for Economic Research, in his editorial for the research publication has opined his views saying that the central banks including the Fed that they should entirely focus on the soundness of their respective Fiats and the banking system, then look at cryptos.
Tucker points out that current systems need more attention
Tucker is a renowned economist, but his areas of interest spread across economics, technology, social philosophy, and culture giving him a holistic view of regulators and their way forward on cryptos. According to him, the regulators have their hands full in the way the current economic work is shaping and should look addressing those rather than jumping into something innovative that comes their way. His views state that ‘Cryptocurrency is the most exciting thing in money and finance on the planet’ and believe that government intervention will just strangulate the success that it has achieved in such a small span of time.
To quote him from his editorial he says
“Innovations like cryptocurrency and the growing infrastructure associated with it are the business of the private enterprise, not the government and official institutions.”
Tucker who has experience of authoring many thousands of articles in the scholarly and popular press and eight books in 5 languages slammed the idea of ECB of coming up with a government-backed crypto or as he calls it the ECB Coin.
He was quoted
“ Most worrisome is an oblique mention of the possibility of central banks’ creating their own cryptocurrencies. What could be the point? Just because something is innovative and fascinating doesn’t mean governments should be involved. It’s hard even to imagine how a government-backed crypto would even work (think of the Petro).”
Ending monopoly solves a lot of problems and cryptos are doing just that
Through the editorial piece, he says that cryptocurrencies are actually providing competition and are starting to exist in a sector long monopolized by governments. It’s the government that created central banks to manage their official currencies directing all commercial traffic through its portals as a way of controlling economic life. This step, according to him bought the end of currency competition and independence in the banking industry. This also led to a lot of political and economic problems that the world is facing today. To quote from the article
“Elites believed they knew best and were so sure that they drove out all private monies and unofficial banks. The age of controlled money had arrived — and with it, world wars, depression and inflation, enormous government indebtedness, and the rise of Leviathan state that learned to print their way to power and riches.”
Highly impressed by the way cryptocurrencies are shaping out, he says it would be foolish for the governments to intervene again and destroy the beauty of technology
“Intervening will only result in more costly regulation and probably end up setting back the cause of genuine competition.”
Tucker views are clear and insightful of what could happen if governments interfered in the way cryptocurrencies functioned. His message to the government and central banks is very clear “Just because something is innovative and fascinating doesn’t mean governments should be involved.”
Is Jeffery Tucker correct in his analysis? Do let us know your views on the same.