Jeffrey Tucker, a known economist and an editorial director for the American Institute for Economic Research has published his ideas of being against the whole concept of cryptocurrency. He has urged governments around the world and central banks to focus on the fiat system and in the development of the current banking system instead of cryptocurrency developments.

Tucker has pointed out that cryptocurrencies long-term vision is to end the monopoly on money and not just be part of the financial system. According to him, the governments need to take precaution and not join in the cryptocurrency vision.

He said, “I’m not a believer. They won’t compete in the marketplace. They might achieve the opposite of the stated goal – the end of monopoly. Truly rivalrous competition is just now starting to exist in a sector long monopolized by governments…Thanks to decentralized-ledger technology and some impressive innovations to create digital money and banking solutions — the technology operates peer-to-peer and requires neither government nor intermediaries to operate — we are beginning to see what real choice in currency might look like.”

There is a contradiction, however, as Tucker spoke about the rise of state-controlled monopoly on the money supply which led to several economic issues and even government debts. Thus what Tucker needs to understand is hyperinflation, and the oversupply of money through printing is more controlled in an environment of a fixed supply leading to demand controlling the market in the case of cryptocurrencies.

Tucker commended cryptocurrencies being vastly popular but highlighted that governments should not get into the digital currencies as it has a very high failure rate.

Tucker is not entirely against cryptocurrencies and wants it to flourish on their own merits without the government getting involved. According to him, he wants a regulatory environment that allows innovations such as cryptocurrency to exist. He gave an example of Venezuela’s cryptocurrency called Petro which is backed with Venezuela’s oil supply. He described the Petro as “not a cryptocurrency, but rather an oil-backed debt instrument floated only to get around U.S. trade sanctions.”

Tucker even claimed that the government cannot be part of the cryptocurrency revolution, as it never invented it.

Cryptocurrencies are decentralized in nature and permit anyone to take part including the government thus Tucker needs to realize that gone are the days that only the inventor is in control. A free market exists thanks to cryptocurrencies with everyone having equal power!

Image Source: “Flickr”