Posted on 02/07/2018 9:10:36 AM PST by SeekAndFind
Publicly fretting about Bitcoin and other cryptocurrencies, last month, Treasury Secretary Steve Mnuchin assured an audience at the Economic Club of Washington that "one of the things we will be working very closely with the G-20 on is making sure that this doesn't become the Swiss numbered bank accounts." He specifically cited the difficulty cryptocurrencies pose to tracking transactions as a major concern.
Soon afterward, India's finance minister, Arun Jaitley, sounded an even stronger note, saying, "The government does not consider crypto-currencies legal tender or coin and will take all measures to eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system."
Why are government officials sounding such similar notes of hostility to increasingly popular non-state cryptocurrencies?
"The core technology underlying cryptocurrencies, known as blockchain, is premised on anonymity," Richard Holden, an economics professor at the University of New South Wales, and Anup Malani, a law professor at the University of Chicago, explain. "But anonymity is also the main fuel for the underground economy, which is now conducted largely via cash." They add, "If cryptocurrencies were to replace cash as the preferred anonymous medium of exchange, they could significantly expand the underground economy because they are so much more convenient than cash."
It's worth remembering that India's government hates cash, too. Less than two years ago, India demonetized all 500- and 1,000-notes—the highest denominations in circulation—turning them into worthless paper overnight. Officials happily plunged the economy into chaos, and forced many people to resort to barter, in an effort to force the private cash holdings powering the country's vast shadow economy into official view, subject to tracking and taxation.
"We can gradually move from a less-cash society to a cashless society," Prime Minister Narendra Modi said at the time, making his ultimate aims clear
(Excerpt) Read more at reason.com ...
The fact that China just announced it was banning all crypto currency trading is all the evidence we need.
The fraudsters pushing fiat currencies don’t want any escape from them.
There is no freedom without financial privacy. Like in other areas of life, there is reason for openness in what goes on in the public square, but individuals need a zone of privacy surrounding their private life.
It is a matter of personal freedom as well as a matter of personal security.
Two key issues concern me.
1. If cash is banned, and absolutely every financial transaction has to go through credit/debit cards, or some other electronic transfers of funds, we lose the remaining privacy we still have of transactions done in cash.
2. It will be much easier for people in power to manipulate our money, if absolutely all money/legal tender, is legally only allowed within a government monitored account of some sort.
How does crypto-currency ensure privacy?
The entire lifetime and every transaction of each crypto-coin is tracked by an immutable blockchain ledger.
Cash on the other hand can be very private.
Cryptocurrency trust-networks are decentralized but in order for the system to work in the long run, additional centralized management or oversight (e.g., SEC, et al) will have to be developed. Which in the end will be just like our current banking systems.
The wealthy just hate it when they can’t control all of the means to wealth, or who holds it.
For some people, it isn’t enough to generate wealth. For them, it is all about control.
If I recall correctly, the US stopped issuing $500 and $1,000 bills many years ago. Could they decide to stop issuing$100 or $50 or $20?? We hear how criminals use big bills and how this would deter criminals.
I have never used crypto currency, but can see some reason to have a store of value outside of government controls.
Cryptocurrencies will not be useful to me until I can instantly exchange them for goods and services.
Anyone who actually thinks bitcoin or other ‘crypto currencies’ aren’t capable of being tracked is crazy.
The obvious gorilla in the room is precious metal coins . . .
This is why governments and banks hate cryptocurrencies.
Governments and leftists/democrats want centralized control of everything and money which is socialism (ownership of the means of production ) because it ensures slavery of the population owned by the government master as in Venezuela and North Korea
Crypto currencies like Monero are decentralized. Governments and leftist hast decentralization. leftists/democrats hate freedom.
I certainly understand why governments and banks want centralized management for crypto, but why is that necessary to make crypto work in the long run? I see a role for such management/oversight when there is custodial control such as crypto banks and inventments in companies via crypto (ICOs). But that's quite different from needing such control to make crypto work in the long run as a currency.
WRT privacy, yes cash is more private than crypto, but crypto is more private than payments via banks.
Control freaks hate cash and cryptocurrency.
I hate control freaks.
Every time you use cash or bitcoin, you are striking a blow against the enemies of liberty in the government and other parts of the establishment.
Exactly. Well put.
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