Outstanding economist and editorial director of the American Institute of Economic Research (AEIR) Jeffrey Tucker called on world governments and central banks to reject the idea of creating state-supported cryptocurrencies, and instead focus on the reliability of fiat money and the banking system.
Tucker said that cryptocurrencies and related infrastructure are the prerogatives of private innovation and entrepreneurship and that governments should not interfere with them. Speaking about ideas on regulating cryptocurrency and strict control by the government, Tucker said that they contradict the ideology of cryptocurrencies.
Explaining this point, he said:
I’m not a believer. They [cryptocurrencies] won’t compete in the marketplace. They might achieve the opposite of the stated goal. … 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.
According to Tucker, the growth of the government-controlled monopoly on the money supply over the past century – this has led to world wars, economic depression, constant inflation, a huge public debt, and a proliferation of government bureaucracies.
Cryptocurrency, according to the economist, is “the most exciting thing in money and finances on the planet”, so governments have no right to put their hands in this sphere.
Intervening will only result in more costly regulation and probably end up setting back the cause of genuine competition.
Tucker also criticized the planned ECB Coin, negotiated by the European Central Bank (ECB), saying it would be meaningless and potentially inoperative.
When the private sector is innovating, government and central banks should leave them alone. And an even better rule: if you didn’t invent it, and you made no contribution to making it more valuable, you can’t regulate it either.