Bitcoin will not disappear and will “strengthen” after the coronavirus crisis, said Rep. Tom Emmer (R-MN).
Rep. Emmer, a well-known cryptography advocate, believes that the greatest merit of the benchmark cryptocurrency against the dollar, the virtual dollar and even the Facebook Balance is its decentralization. In an interview with Morgan Creek CEO Anthony Pompliano, he argues that all the other opportunities discussed are at the helm.
“I prefer that if we paint in a cryptocurrency, you your wallet, me my wallet, and you and I exchange between us without an older brother,” he said, explaining how Know-Your-Customer (KYC) regulations have become so strict that opening an account forces the bank to view user transactions from another bank.
Like the way Bitcoin was created in the 2008 currency crisis, others would start looking for “value stores.” He cited how other people in Washington had the idea that printing more cash was appropriate because the U.S. I was exporting and other people would continue to buy American products. Emmer said the devaluation of the US dollar would not be paint and that other people would seek tactics to protect their funds.
When it comes to regulation, Emmer thinks Bitcoin will follow the path of least resistance. He cited a bill they are working on that would not require crypto companies to have a money transmitting license in every state.
“This will remove the tile because not everyone understands cryptography,” he said. For this to happen, the tension has to come from the bottom. Emmer said the tension would come from the “talent and capital” that could leave the country and move to where legislation and regulators are in favor. “If we need to be late, what we are already, we can keep lowering that.”
In 2019, the Poloniex cipher exchange closed its operations to U.S.-based customers, which raised regulatory concerns. But other exchanges like Binance have uncovered tactics to contribute to U.S. partnerships and acquisitions. Binance US is a separate exchange for U.S. customers, who planned to launch futures trading in the country by obtaining an already authorized company.
Emmer also cited the move by the Office of the Comptroller of the Currency (OCC) to allow banks to take custody of cryptocurrency as a positive signal for the industry. Commending OCC acting chief Brian Brooks for making a significant contribution to Bitcoin’s future, he said it’s also a signal that Bitcoin is not going away because banks are something familiar to traditional and retail investors alike.
Emmer added that he’s confident with the future of Bitcoin because it has a lot of talented and smart young people who would figure out a way to get around the rules. He said the government should lean on the crypto community to learn more about the industry.
Emmer lamented the fact that many of his colleagues on both sides still do not perceive the cryptocurrency. “When you hear Bitcoin, all you hear is Silk Road,” he said, referring to the clandestine online page that Bitcoin used to facilitate drugs and other illegal transactions. He said twitter’s recent hacking, which had been “presented” as a Bitcoin hack through the media, was in fact the social networking site’s fault if it had been compromised.
Cryptocurrencies, despite grey regulatory areas, have dabbled in the industry in recent years, with bitcoin paving the way Photo: AFP / Justin TALLIS