In a prepared statement for today’s United States Senate’s crypto hearing
by international lawyer Mehrsa Baradaran, suggests that cryptos are not
the solution for financial inclusion and equity in banking.
Policy, not technology is the solution
In her statement, published on the Senate’s website, Baradaran explains that the issues of inequality and inefficiency in finance that Bitcoin (BTC) and other cryptocurrencies are trying to solve should be resolved through policy, not technology.
She
explains that such issues should be addressed “in this chamber, and not
in a tech startup office or anonymous white paper.” She concludes:
“While
I share many of the cryptocurrency industry’s concerns with respect to
failures of the banking industry, I do not believe cryptocurrency is the
best solution to the problems of financial inclusion and equity in
banking.”
The Fed will protect its influence
In response, senior market analyst at eToro, Mati Greenspa, pointed out
that the Federal Reserve is incentivized to keep its power, not to
increase financial inclusion, and no amount of lobbying can change this.
He said:
“The
only way to get them to change is to disrupt their business model. By
supporting bitcoin or other independent forms of money, they will be
forced to compete with it. Only then will you get the inclusion you
seek. Capitalism 101!! The Fed has a monopoly.”
As Cointelegraph reported
earlier today, Circle co-founder and CEO Jeremy Allaire is scheduled to
testify before Congress today as a representative of The Blockchain
Association — a business organization comprised of blockchain industry
advocates.
Follow the official Twitter account of Cointelegraph for live coverage of the event that is scheduled to start July 30 at 10 a.m. EST.
