Congressman Kevin McCarthy has urged Treasury Secretary Janet Yellen and Federal Reserve Chairman Jerome Powell not to ignore bitcoin as they have tried. He believes it is the future and insists, “I don’t want America to fall behind” other countries.
Government and the Fed cannot ignore Bitcoin
GOP leader Kevin McCarthy spoke about bitcoin in an interview with CNBC last week. Congressman McCarthy serves California’s 23rd district and is currently the Republican leader in the United States House of Representatives.
He was specifically asked if he thinks Treasury Secretary Janet Yellen and Federal Reserve Chairman Jerome Powell have a good understanding of digital currency or bitcoin, given their recent comments and what advice he has for them.
McCarthy, a longtime proponent of bitcoin, said in July 2019, “I love bitcoin” and the security of the blockchain technology behind it. The congressman reiterated his views on bitcoin in 2019, replying, “I was right and now I am,” explaining:
I think they tried to ignore it to make it go away. I think Jamie Dimon will tell you he was wrong from the start. This is moving towards the future. They shouldn’t ignore it.
Jamie Dimon, CEO of JPMorgan, called bitcoin a “fraud” that is “worse than tulip bulbs” in 2017. His bank has come a long way since then. Today JPMorgan says it sees huge institutional demand for bitcoin and has launched a crypto investment product that tracks public companies with exposure to bitcoin.
Federal Reserve Chairman Powell and Secretary of the Treasury have not warmed to bitcoin. Powell said last week that cryptocurrencies are “vehicles for speculation.” He claimed that “they are not really being actively used as payment,” despite a growing list of companies accepting them as payment, including Elon Musk’s Tesla. Finance Minister Yellen shares a similar sentiment. She called bitcoin a “highly speculative asset” in February, claiming it was not “widely used as a transmission mechanism” and an “extremely inefficient way of executing transactions.” Yellen also warned that the misuse of cryptocurrencies is a growing problem, noting that cryptocurrencies are mainly used for illegal financing.
In addition, McCarthy said during last week’s interview that with regard to bitcoin and cryptocurrencies, Treasury Secretary Yellen and Fed Chairman Powell “should not only learn more about it, but the base will continue to grow.” He further opined:
This is something that those who regulate, those in government making policies better, are beginning to understand what it means for the future.
The congressman stressed that “other countries are making progress” on digital currencies. “I don’t want America to fall behind. I want the next century to be ours. That is why I want to look forward, not backward, and not keep my head in the sand, ”the legislator concluded.
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