Bitcoin’s explosive growth is dramatically disrupting the monetary and banking system to such an extent that banking and government authorities are sounding the alarm. In effect, the chief of the U.S. Treasury now fears that Bitcoin will become like a “Swiss Bank Account.”
Bitcoin Defies the Banking System
Bitcoin lets you have your private bank in your electronic wallet. As a result, Bitcoin will eventually render the fiat monetary and banking system obsolete. Hence, U.S. Treasury Secretary Steven Mnuchin’s concerns might be justified. Now, Mnuchin is warning against Bitcoin becoming the next “Swiss bank account.”
Sec. Mnuchin reports to #EconClubDC that @USTreasury is very focused on #cryptocurrency. His biggest concerns: making sure “bad people cannot use currencies for bad things,” as well as the speculation surrounding these currencies.
— The Economic Club (@TheEconomicClub) January 12, 2018
For example, Mnuchin believes that anonymous financial transactions should be prevented. In this regard, according to Bloomberg, Mnuchin said:
We can track those activities. The rest of the world doesn’t have that, so one of the things we will be working very closely with the G-20 is making sure that this doesn’t become the Swiss bank account.
As Secretary of the Treasury, Mnuchin is the principal economic advisor to the U.S. President and plays a critical role in policy-making. His duties involve bringing an economic and government financial policy perspective to issues facing the U.S. government.
Bloomberg reports that Steven Mnuchin said that he would work with the G20 countries “to prevent cryptocurrencies such as bitcoin from becoming the digital equivalent of an anonymous Swiss bank account.”
The Economic Club of Washington, D.C. is the premier forum for elite global leaders to share their perceptions about significant issues of the day with top-tier business leaders.
Mnuchin was sworn in as Secretary of the Treasury on February 13, 2017. Before his confirmation, Mnuchin was Finance Chairman for Donald Trump’ Donald Trump for President and Senior Economic Advisor to the President. As such, Mnuchin crafted Trump’s economic positions and economic speeches.
Bitcoin Will be The Focus of the G20
Secretary Mnuchin is echoing his French counterpart. Indeed, the French government has already requested a debate about regulating Bitcoin at the upcoming G20 summit.
The G20 will meet in Argentina this year. The G20 includes the governments and central bank chiefs of the world’s significant economies: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, Turkey, United Kingdom, United States, and the European Union.
On December 17, 2017, French Finance Minister Bruno Le Maire declared that he was going to ask the President of Argentina Mauricio Macri if G20 member countries could discuss regulating Bitcoin. According to Reuters, Le Maire said:
There is evidently a risk of speculation. We need to consider and examine this and see how (…) with all the other G20 members we can regulate bitcoin.
As Bitcoin expands, bankers and governments will increasingly get worried and call for stricter regulations. However, Bitcoin will prevail and remain censorship-resistant.
What do you think about the potential impact of the G20’s debate about how to regulate Bitcoin? Let us know in the comments below.
Images courtesy of Reuters, The Economic Club of Washington, D.C.