In a prepared statement for today’s United States Senate’s crypto hearing by international lawyer Mehrsa Baradaran, she suggests that cryptos are not the solution for financial inclusion and equity in banking.
Policy, not technology is the solution
In her statement, published on the Senate’s website, Baradaran explains that the issues of inequality and inefficiency in finance that Bitcoin (BTC) and other cryptocurrencies are trying to solve should be resolved through policy, not technology.
She explains that such issues should be addressed “in this chamber, and not in a tech startup office or anonymous white paper.” She concludes:
“While I share many of the cryptocurrency industry’s concerns with respect to failures of the banking industry, I do not believe cryptocurrency is the best solution to the problems of financial inclusion and equity in banking.”
The Fed will protect its influence
In response, senior market analyst at eToro, Mati Greenspan, pointed out that the Federal Reserve is incentivized to keep its power, not to increase financial inclusion, and no amount of lobbying can change this. He said:
“The only way to get them to change is to disrupt their business model. By supporting bitcoin or other independent forms of money, they will be forced to compete with it. Only then will you get the inclusion you seek. Capitalism 101!! The Fed has a monopoly.”
Circle co-founder and CEO Jeremy Allaire is scheduled to testify before Congress today as a representative of The Blockchain Association — a business organization comprised of blockchain industry advocates.