Last month former U.S. Federal Deposit Insurance Corporation chair Sheila Bair announced that she believes that there should be more regulations on digital currency like bitcoin, but she doesn’t necessarily believe that there should be bans against it.
Banning bitcoin has been a common argument amongst financial leaders and various countries. Some are for it, while others are against it. Then there’s Russia, who announced in November of last year that bitcoin will “never” be legal and then changed its mind by announcing on December 7 that bitcoin might become legal, but it will be the mining of bitcoin that will be deemed illegal.
What Happened This Week?
On Friday, January 19, Bair reiterated her Dec. statement in an interview with CNBC in which she again stated that there is no real reason to put a ban on bitcoin but that there is a reason for virtual currencies to have additional regulation.
Personally, I agree with Bair. While I don’t think bitcoin should be banned as an asset – as Bair said, “we don’t ban assets”- there does need to be more of a focus on regulating the cryptocurrency market in order to prevent things like money laundering and the possibility for the manipulation of the market.
Bair went on to express her worries about bitcoin, all of which I agree wholeheartedly with. She stated that she thinks the masses are starting to invest in bitcoin because they think they will see high returns, and like me, Bair believes that people are investing in the currency before fully understanding it and its potential.
It’s similar to how other prominent financial leaders have said that people are, in a way, being duped by bitcoin when the successful agent of it all is the technology behind it, called blockchain.
What do you think?
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