Congressman Kevin McCarthy has urged Treasury Secretary Janet Yellen and Federal Reserve Chairman Jerome Powell not to ignore bitcoin like they have been trying to do. He believes it is the future, emphasizing, â€œI do not want America to fall behindâ€ other countries.
Government and the Fed Should Not Ignore Bitcoin
GOP leader Kevin McCarthy talked about bitcoin in an interview with CNBC last week. Congressman McCarthy serves Californiaâ€™s 23rd district and is currently the Republican leader in the U.S. House of Representatives.
He was asked specifically if he thinks that Treasury Secretary Janet Yellen and Federal Reserve Chairman Jerome Powell have a good understanding of digital currencies or bitcoin given their recent comments and what advice he has for them.
A longtime proponent of bitcoin, McCarthy said in July 2019, â€œI like bitcoinâ€ and the security of the blockchain technology behind it. Reiterating his view on bitcoin back in 2019, the congressman replied, â€œI was right then and Iâ€™m right now,â€ elaborating:
JPMorgan CEO Jamie Dimon called bitcoin a â€œfraudâ€ that is â€œworse than tulip bulbsâ€ in 2017. His bank has come a long way since then. Today, JPMorgan says it sees massive institutional demand for bitcoin and has launched a crypto investment product tracking public companies with bitcoin exposure.
Federal Reserve Chair Powell and Treasury Secretary have not warmed up to bitcoin. Powell said last week that cryptocurrencies are â€œvehicles for speculation.â€ He claimed that â€œTheyâ€™re not really being actively used as payment,â€ despite a growing list of companies accepting them for payment, including Elon Muskâ€™s Tesla. Treasury Secretary Yellen shares a similar sentiment. She called bitcoin was a â€œhighly speculative assetâ€ in February, asserting that it was not â€œwidely used as a transmission mechanismâ€ and was an â€œextremely inefficient way of conducting transactions.â€ Yellen also warned that the misuse of cryptocurrencies is a growing problem, noting that cryptocurrencies are mainly used for illicit financing.
McCarthy additionally said during last weekâ€™s interview that regarding bitcoin and cryptocurrencies, Treasury Secretary Yellen and Fed Chair Powell â€œshould not only learn more about it but the basis is going to continue to grow.â€ He further opined:
The congressman emphasized that â€œother countries are moving forwardâ€ in the area of digital currencies. â€œI do not want America to fall behind. I want the next century to be ours. Thatâ€™s why I want to look forward, not backward, and not keep my head in the sand,â€ the lawmaker concluded.
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