The former Texas congressman admires bitcoin but worries that US authorities might ban cryptocurrencies like gold did in 1934.
Ron Paul stated that the government could severely restrict the cryptocurrency markets. Paul explained that over time, the situation of 1934, when the gold reserve law forbade Americans to keep and trade in the precious metal, could repeat itself. Only this time, the ban will target cryptocurrencies.
“I was strongly influenced by the history of gold, my interest in the study of money and some of the principles that Austrian economics teaches. But this does not stop me from arguing in favor of those who use cryptocurrency and understand it better than me. In any case, I believe that cryptocurrencies should be allowed, ”says the ex-MP.
Paul is surprised that the crypto industry is adamant about getting regulatory clarity. He argues that this mentality is quite the opposite of what gold investors had decades ago:
“About five years ago or so, I was at a conference where someone was very interested in regulation. They asked me about how to get to the right people in the right committee to get clarification, because it is very necessary to write the rules, because then we will, they say, be credible. You know, the safest asset is the one that complies with SEC rules.”
As an example, a former member of Congress cited the policy of gold investors, who even ten years ago were afraid to interact with regulators.
“The people who owned the gold avoided contact so that the government would not know where their gold was. They were afraid that the authorities would want to take him again, ”said Paul.
The former politician claims that bitcoin is different from other assets, as it correlates with the movements of the stock market and traditional assets.
In 2021, the founder of the Gemini cryptocurrency exchange and bitcoin billionaire Tyler Winklevoss said that bitcoin is too advanced to be banned in the US. In 2019, economist and cryptocurrency trader Alex Kruger said that while the US president could ban bitcoin, he was unlikely to do so. According to the CEO of the crypto-currency company Abra, Bill Barhyt (Bill Barhydt), the US authorities will not be able to ban bitcoin, since it is protected by the US constitution.
Source: Bits
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