One of the most influential US politicians, Ron Paul, recalled: Bitcoin is money and is not subject to regulation. The three-time presidential candidate and one of the most influential American politicians believes that the authorities should legalize Bitcoin, but not build too many rules around it.
Talk about a possible tightening of rules in the cryptocurrency market has once again captured the American investor community. The reason is the harsh suppression of the industry by the authorities of China and Turkey, as well as the statement by the head of the SEC Gary Gensler about the development of new standards.
The former congressman criticized the levying of taxes on Bitcoin and gold, in which US citizens are actively investing amid the depreciation of the traditional currency.
Moreover, Paul believes that the only chance to avoid the global crisis is not to tax transactions in precious metals and cryptocurrencies.
The American politician noted that he is interested in cryptocurrency, since it is “not created by the government”. However, he said it was necessary to do everything for Bitcoin to obtain legal status.
According to Paul, the final decision should remain with the citizens.
Paul explains that the state will always seek to suppress alternatives to government money. However, a more promising solution would be to let citizens determine what is best for them – the dollar or Bitcoin.
“The ideal system is freedom of choice. And then you and I can decide what to use as our monetary system”, said the former congressman.
Previous statements by Ron Paul
The former congressman has previously spoken out on digital currency regulation. In July 2019, he stated that the role of the state in this matter should be to prevent fraud.
In May 2019, Paul proposed to the US Securities and Exchange Commission to withdraw from the regulation of cryptocurrencies and allow them to develop naturally.
Recall that the well-known macroinvestor Raul Pal said that legal status and taxation don’t deprive digital assets of value.
Cryptocurrency technology has a great future
Paul is an outspoken critic of the Federal Reserve’s overprinting of money during the coronavirus pandemic. He argues that government-created fiat currency is subject to constant manipulation through interest rate changes. And so he adds cryptocurrencies to the basket of values. Although he doesn’t take the radical position that Bitcoin can replace gold. “It is possible that cryptocurrencies that use blockchain and the gold standard can exist together and complement each other. Rather than forcing investors to choose between these financial instruments”, Ron Paul noted.
Paul believes there is a great future for cryptocurrency technology. Notably, his son Rand Paul, a senator from Kentucky, previously collected Bitcoin donations as part of his political campaign after the practice was approved by the FEC.
Ron Paul is confident – “there will be alternatives to the dollar, and Bitcoin may well become one of them”. Paul also added that if people start using Bitcoin en masse, “it will go down in history as the gravedigger of the dollar”. It is unlikely that Bitcoin will replace the dollar or other state-controlled currencies. But it can serve as some kind of universal alternative currency that will be recognized around the globe.