Complete Ban Of Cryptocurrencies Prescribed By American Congressman

Complete Ban Of Cryptocurrencies Prescribed By American Congressman

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The American government and government officials have, in recent weeks, been putting the pressure on cryptocurrencies. President Trump tweeted about digital assets, stating his distaste for them and saying that they are volatile and backed by thin air. Treasury Secretary Steve Mnuchin also came out and expressed adversity towards crypto.

Another US government official has come out to criticize cryptocurrencies. Congressman Brad Sherman has come out and called for a complete ban to be imposed on cryptocurrencies. The congressman who has been vocal in his criticism of crypto over the years said that Bitcoin has no real used besides being a gateway for the funding of illicit activities. He added a warning about the risks cryptocurrency brings to the stability of the political and financial sectors in the United States.

In a recent appearance on Bloomberg TV to discuss Facebook’s Libra, Sherman said that Facebook’s coin poses an unprecedented threat to the United States’ economy and national security. As the conversation shifted to cover issues regarding cryptocurrencies in general, Sherman said that cryptocurrencies have no use besides facilitating nefarious transactions.

Libra will replace Bitcoin to become favorite crypto for criminals

As evidence to support his position that Bitcoin is used to promote illegal activities, Sherman pointed to an unnamed “peer reviewed” study. He said that this study determined that 46% of Bitcoin transactions are done by people who are engaging in some sort of criminal enterprise in the United States. This unnamed “peer reviewed” study casts Bitcoin trading in a bad light.

While there are some members of Congress who hold the belief that Bitcoin is unstoppable, Sherman believes that the leading cryptocurrency can be reigned in. The representative of Carlifonia’s San Fernando Valley is of the opinion that Bitcoin is not the problem but a sign of even bigger problems that are brewing.

He pointed out to the fact that Bitcoin cannot be used to perform small everyday transactions unlike what Libra will allow people to do. Through Libra, he said that people will be able to use their illegal funds without having to convert the digital asset into fiat money as is required in the use of Bitcoin.

Crypto community unimpressed by Sherman’s interview

Crypto users were predictably unhappy with the comments made by Sherman during his interview. The crypto community on Twitter expressed the sentiment that Sherman has limited knowledge about the crypto industry and that he is clueless about how Bitcoin functions. The members of the crypto community pointed out that you can use Bitcoin in everyday transactions as is the case with buying a new Tesla of even legal marijuana in some places.

It is yet to be seen if the comments made by the congressman will have any impact on Bitcoin trading or on the hearings scheduled to discuss Libra. At this time, crypto trading markets seem unbothered by the utterances and Bitcoin appears to have remained on its upward trajectory above the $10,000 mark.

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About Ali Raza

A journalist, with experience in web journalism and marketing. Ali holds a master's degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications.