Should Government Control Cryptocurrency?

Like rats fleeing a sinking ship, partners like VISA, Mastercard and PayPal have fled Facebook’s foray into cryptocurrency, called Libra.

With international governments giving the digital asset a raking over, including Congress and the Treasury Department, concerned that it will be used for terrorism financing and money laundering, its leader, David Marcus, has continued to try to appease them.

But could there be an underlying reason why Libra is getting a hard time?

Perhaps it’s because governments don’t want to give up control of their currency.

In a recent opinion piece in the Wall Street Journal, two former CTFC officials have suggested that the United States create the Digital U.S. Dollar.

digitaldollar

It would be a blockchain based cryptocurrency “maintained by an independent nongovernmental group but administered by banks and other trusted payment organizations.”

The virtual money would be backed by greenbacks held in a special escrow account at the Federal Reserve.

And the U.S. government would control it all.

The best of all possible worlds.

https://www.wsj.com/articles/we-sent-a-man-to-the-moon-we-can-send-the-dollar-to-cyberspace-11571179923?mod=searchresults&page=1&pos=1

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
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