US congressman says Bitcoin has “no societal value”, only suitable for tax evasion
US Congressman from Califonia Brad Sherman has once again lashed out at Bitcoin (BTC), stating that the flagship cryptocurrency has ‘no societal value’, citing its lack of intrinsic value and ability to facilitate crime.
In an interview with CNBC on September 10, Sherman dismissed Bitcoin’s potential to become a future currency, stating that it only has an advantage over the dollar because it can aid crimes such as tax evasion. He also suggested that Bitcoin has no support to improve the economy.
“Suppose it becomes a currency [Bitcoin]. If so, it will only be because it can outcompete the dollar for some pretty big markets, especially the tax evasion market, and that’s why it has no societal value. We want people to invest in assets that will build the American economy, he said.
Chances of Banning Bitcoin
Interestingly, Sherman, who has been pushing to ban Bitcoin, admitted that it is almost impossible to ban the asset at the moment, but noted that with regulations, the government could regain “some control”.
“The critical thing is to impose know-your-customer and crypto anti-money laundering laws. Once it’s clear that these laws are in place, crypto loses the one thing it wants to be, and that is to successfully compete with the dollar by having an advantage over the dollar,” he added.
According to the lawmaker, if Bitcoin is successfully regulated, it may lose some of its interest because the laws will expose the asset’s inability to match the dollar.
The Power of Bitcoin
Overall, Sherman is part of US lawmakers who are vocal about banning Bitcoin because there is “too much power and money” behind cryptocurrencies. Because of this ability, Sherman believes the government cannot currently ban the asset.
“I don’t think we’re going to get it [to a ban] anytime soon. Money for lobbying and money for campaign contributions work, or people wouldn’t do it; and that’s why we haven’t banned crypto. We didn’t ban it in the beginning because we didn’t realize it was important, and we didn’t ban it now because there’s too much money and power behind it, he said.
In the past, Sherman has compared Bitcoin to a Ponzi scheme, noting that investors buy the asset only to sell it at higher prices.
It is worth noting that there is a comprehensive bill before the US Congress by Wyoming Senator Cynthia Lummis on crypto regulations. Leaders who support digital assets have argued that cryptocurrencies need to be regulated and not banned.
The regulatory aspect has also attracted interest from the White House, which commissioned a study on the development of cryptocurrencies. In this line, President Joe Biden’s administration also raised concerns that the production of cryptocurrencies such as Bitcoin could hinder ongoing efforts to combat climate change, citing the digital resource’s impact on the environment.
