Crypto Chiefs’ date with lawmakers at Capitol hill kicked off on Wednesday amid crypto markets struggling to gain a footing following last week’s sell-off and one thing was clear; they were determined to go down with their detractors.
Crypto Is All About Decentralization
BitFuryGroup’s CEO Brian Brooks was the first to take the stand in defending his stance on digital currencies and he didn’t miss the chance to put across crypto’s core agenda.
“The point of crypto is to have true decentralization and the projects that succeed will be the projects that achieve that,” he said.
The former Binance.US CEO further defended his statement noting that Bitcoin’s success can be attributed to the fact that there are millions of participants on its node network. “So there is no CEO of Twitter to de-platform, there is no C.E.O of JPMorgan to take away your credit card, its user-controlled” – he added.
Crypto Strengthens the Dollar
Brooks further took to clarifying a most pressing question asked by Representative Luetkemeyer regarding the threat posed by cryptocurrencies against the Dollar’s reserve currency status.
According to him, the secular reduction in Dollar holdings as a percentage of global central bank holdings “is alarming”. With the trend going on for over ten years now and the Dollar losing its ground in central banks around the world, Brooks was concerned that countries such as China and other major economies could soon take over the scene.
“We cannot take its primacy for granted and we need to start competing on utility, on features, not just based on a post World War 2 monetary system that we could take for granted for the last two generations,” he told the lawmakers. This, he said, was the reason he has been a big supporter of internet-enabled dollars which allow competition based on features not only on history.
Crypto Good For Inflation
The C.E.O also brought up the issue of cryptocurrencies being a hedge against inflation. With the U.S. treasury continuously printing dollars at the directives of lawmakers, Brooks expressed concerns of the Greenback soon losing its strength warning that “there will come a time gradually then suddenly when the attractiveness of the dollar relative to other currencies could change”.
As opposed to the popular belief that cryptocurrencies are a threat to the Dollar, Brooks assured the committee that on the contrary, cryptocurrencies would help the FED in implementing its monetary policies against ballooning inflation.
“One of the benefits of the crypto economy is that it creates some counter incentives on the part of the FED to do that kind of policy because people will flee to other kinds of assets,” he continued.