The British economic and financial historian Niall Ferguson said the United States should find its own way of adopting cryptocurrencies, not “creating [our own] copies of electronic payment systems in China.”
In a statement to Bloomberg, Ferguson said Sunday that the current epidemic is generally favorable to the adoption of cryptocurrency, which is accelerating the “money revolution” around the world. However, the historian noted, China “quickly” launched the digital yuan and expanded its use of mobile payments. Apps like Alipay and WeChat Pay are said to process around $ 40 trillion in transactions annually.
The historian believes that these measures from China serve as a model for other countries developing systems for payments and cross-border transfers. However, he advised the United States not to do so:
“Even governments that, like India, oppose the economic penetration of China are essentially creating their own versions of electronic payment systems in China,” Ferguson said. “Instead of trying to create a Chinese-style digital dollar, the emerging Joe Biden administration should recognize the benefits of integrating Bitcoin into the US financial system.”
Ferguson added that US authorities already have ways to deal with Bitcoin (BTC) enforcement. The IRS now requires people to make a statement regarding their cryptocurrency when redeeming funds, and may harass Coinbase users who do not comply with tax and reporting requirements. Additionally, the FBI has identified cases of money laundering using cryptocurrency.
The historian said simply: “The point is simply that the financial data of law-abiding people is better protected by Bitcoin than Alipay.”
The personal views of the president-elect on cryptocurrencies, central bank digital currencies and Bitcoin are unknown, but there are indications that the people in his administration could help bring cryptocurrencies into a more friendly regulatory environment in the United States. For example, Biden could appoint former CFTC chair Gary Gensler as his deputy secretary of state.