A US Representative is urging his colleagues to join him in implementing a nationwide US ban on cryptocurrencies. This cryptocurrency-averse stance comes as the Representative fears that cryptocurrency could replace the US dollar if not immediately curbed.
Sherman: ”Cryptocurrencies are only useful for criminals”
Specifically, the Congressman in question is the notoriously Bitcoin-averse California Democrat Representative Brad Sherman (D). He made these recent comments during a meeting of the House Financial Services Committee on May 9th.
Sherman argued that a US ban on cryptocurrencies is necessary in order to counter, what Sherman claims, are cryptocurrency-specific hazardous effects. Moreover, Sherman made the case that cryptocurrencies pose a threat to the US dollar and could potentially undermine it.
In addition to this, Sherman also claimed that a US cryptocurrency ban was needed as cryptocurrencies are ”only useful” for criminal activities such as money-laundering, drug-dealing and tax evasion.
This is an oft-repeated adage which has frequently been disproved. Be that as it may, Sherman nonetheless called on other members to join him in his crusade against cryptocurrencies:
”I look for colleagues to join with me in introducing a bill to outlaw cryptocurrency purchases by Americans, so that we nip this in the bud.”
Sherman fears cryptocurrencies could supplant the US dollar
Many observers will no doubt find Sherman’s comments nonsensical, as the usage of fiat currencies in relation to money-laundering, drug-dealing and tax evasion dwarfs the usage of cryptocurrencies.
Moreover, simply banning new technologies is a powerful deterrent against innovation and development. Nevertheless, Sherman also reasoned that a US cryptocurrency ban is necessary in order to prevent cryptocurrencies from supplanting the US dollar as a de facto global currency.
”An awful lot of our international power comes from the fact that the U.S. dollar is the standard unit of international finance and transactions,” Sherman noted. He also displayed a palpable lack of understanding for the technical advantages cryptocurrencies hold, claiming the technology only presents drawbacks.
”So whether it is to disempower our foreign policy, our tax collection enforcement or traditional law enforcement, the advantage of crypto over sovereign currency is solely to aid in the disempowerment of the United States and the rule of law.”
Anecdotally, Sherman noted how the Palestinian group Hamas could employ the use of cryptocurrencies in efforts to circumvent US sanctions. However, Sherman’s comments should be taken with a grain of salt, seeing as he has long been opposed to cryptocurrencies.
The Representative has previously criticized Facebook’s cryptocurrency efforts, claiming it would only ”protect drug-dealers, tax evaders and terrorists”. Nonetheless, it seems unlikely that Sherman’s outcry would bring about a US ban on cryptocurrencies.
As it stands, his most recent comments are simply the opinion of a single person without any significant political sway. However, they act as a reminder that no country is immune to politicians reluctant to monetary systems change.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.