US Congressman: Bitcoin (BTC) Is a Great Store of Value, Central Bank Printing Has Consequences

U.S. Congressman Warren Davidson believes that Bitcoin is a great store of value while taking photos at central banks for their efforts to print more money.

In a new interview with Laura Shin of Unchained, the Ohio Republican laud the potential of crypto assets. He also criticizes how often modern central banks print money.

“Some people in space don’t support central banks. I think a central bank plays a role, but I think it’s a warning, like people say, ‘Oh, we have to print another three trillion [dollars] and another. ”

The modern monetary theory: people who believe that if you have a central bank, you can just keep printing [money]. That is not what history shows, and frankly it is the logic that you can weaken the value of everyone’s money and that it has no consequences, and that is completely irrational. So people in the crypto space and of course Bitcoin fans will see the misleading argument for what it is. ”

But that doesn’t mean Davidson believes Bitcoin should replace the dollar. Congressman doesn’t believe BTC is agile enough to be a national currency, especially in light of the economic demands caused by Covid-19.

“I think if you had Bitcoin as your national currency, you would see the lack of flexibility [BTC] in a situation like this. I personally see Bitcoin a bit like digital gold versus a real currency. I think it is a great value. “

Davidson, a former U.S. Army ranger, took an early interest in Bitcoin due to his background as a manufacturing business owner and operator, who were forced to deal with inefficiencies in processing international payments.

As a congressman, Davidson wrote the Token Taxonomy Act of 2019, an all-encompassing piece of legislation intended to support innovators in the crypto economy and provide regulatory clarity to blockchain companies.

The law provides a four-part test for tokens to avoid designation as securities. According to Davidson, the law states that non-secure tokens should be: already created and functioning (a live network), on a distributed ledger that does not require a third party to transfer assets, which cannot be changed by a central authority, and do not represent shares of an entity.

However, due to a recent change in committee chairs, the Congressman is not optimistic about the bill’s short-term prospects.

Clearly, Brad Sherman is the most outspoken opponent in Congress of this space. Brad Sherman is a Democrat from Los Angeles and now he is the chairman of the Captial Markets Subcommittee…. it is safe to say that as long as he is in that presidency it will be a challenge to move legislation. “

Davidson says he personally does not own Bitcoin, noting that it would be inappropriate – although not technically against the rules – for his public role as a legislative advocate of the crypto space.

Featured image: Shutterstock / Gary Blakeley

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