Democrat Writes US Regulators to Ban Decentralized Currencies

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Democratic Senator Writes US Regulators to Ban Decentralized Currencies

Senator Joe Manchin III thinks cryptocurrencies – Bitcoins, Litecoin and others – are harming hard working Americans.

ForexMinute.com – West Virginia’s Senator Joe Manchin recently expressed his concerns over the rising popularity of cryptocurrencies in a letter written to US regulators. The democrat however limited its criticism to Bitcoin only, calling it “highly unstable and disruptive”, whilst urging regulators for an outright ban on the currency.

The man cited the recent collapse of Japan-based Bitcoin exchange Mt. Gox in its letter to prove the Bitcoin’s stigmatic reputation as a trading currency. His overall apprehension was to make authorities aware of the probable impact an average American can face by dint of Bitcoins.

“As of December 2013,” he writes, “the Consumer Price Index (CPI) shows 1.3% inflation, while a recent media report indicated Bitcoin CPI has 98% deflation. In other words, spending Bitcoin now will cost you many orders of wealth in the future. This flaw makes Bitcoin’s value to the U.S. economy suspect, if not outright detrimental.”

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He also raised the Bitcoin’s good-old-criminal-misuse for buying illegal goods like drugs and weapons, while referring to the reports of Senate Homeland Security and Governmental Affairs Committee over the Bitcoin’s criminal misconducts and its implications on taxation. “Before the U.S. gets too far behind the curve on this important topic, I urge the regulators to work together, act quickly, and prohibit this dangerous currency from harming hard-working Americans,” he concluded the letter.

On the other side, Federal Reserve Board chair Janet Yellen has told the banking committee that Feds have no authority to regulate Bitcoins, in response to Joe Manchin. The event occurred the day-after Joe wrote the letter to US regulators.

“Bitcoin is a payment innovation that’s taking place outside the banking industry. To the best of my knowledge there’s no intersection at all, in any way, between Bitcoin and banks that the Federal Reserve has the ability to supervise and regulate. So the Fed doesn’t have authority to supervise or regulate Bitcoin in anyway,” Yellen had said.

To contact the reporter of the story: Jonathan Millet at john@forexminute.com