We have all known that the traditional banking industry is completely anti-Bitcoin and other cryptocurrencies. But, the extent to which some of the biggest banks are against it has not been revealed until now. There are serious efforts by some banks in some countries to quell the popularity of the cryptocurrency. Now, everyone knows that America professes freedom and bravery for all citizens, at least in words. However, it all seems that there is a place it does not want to extend that freedom to, and that is towards the cryptocurrencies. What many people have mushed and stuttered behind closed doors was laid in the open by the New York Federal Reserve Bank's incoming president named John Williams. He posited that the cryptocurrency “doesn’t pass the basic test of what a currency should be.”
Williams, who is heading the San Francisco Federal Reserve Bank at present, is currently in support of the old or established order and obviously against the Bitcoin. He is arguing against the establishment and popularization of Bitcoin based on the overstretched and empty 'store of value' argument. For him, a currency must have a store of value for it to be viable and dynamic. The next argument he made is that real currencies must be elastic and resilient enough to withstand changing financial and economic environments. These points of view have been expressed on many occasions by many people like him, and they seem not to be tired of it yet.
Williams has voiced the bias that the banking sector has against Bitcoin openly. This man whose entire career life has been spent in the banking sector came out openly to voice his bias against the currency. Stating this, he justified it with reasons like the way the Bitcoin institution is arranged or set up. Furthermore, he talked about the money laundering problems, fraud problems, terror financing issues and some others. He believes that the difficulties involved are many, and this made him mark Bitcoin as a promise of technology and not the real instrument.
Angle of Power
Now, it seems very odd and unnecessary for such a banker to take an open dig at the Bitcoin. But the more worrying aspect of this is the fact that he will become the head of the New York Federal Reserve Bank from June this year. This is a bank that has immense power when it comes to the financial and economic sphere. By volume, it is actually the most active Federal Reserve Bank, while by assets, it is the largest. This explains the level of influence it wields, and Williams will be taking over this very influential financial institution of the states, with his anti-cryptocurrency stance. This indeed is a scary thing.
Issues about the regulation of the cryptocurrency market in the US are not clear. Because of this, most of the companies that are into cryptocurrency do not even know their place in terms of the regulations and the laws. So, most of the leading cryptocurrency investors have demanded the Securities and Exchange Commission (SEC) provides exemptions to Initial Coin Offerings (ICO) and soft pedal on crypto regulations.
It has not been easy to predict the stance of the US as a crypto market in the recent past. However, now that Williams who is completely anti-crypto is moving into the helm of affairs, the future promises to be worse for the currency.