Ron Paul On Bitcoin: ‘Fed Cannot Handle Real Competition, And So It Is Trying To Shut It Down’
- Fed is Late to the Party & is coming with one bad idea after another
- “It’s Got a Monopoly to Protect,” – Ron Paul
“(The Fed) worries about Bitcoin, it worries about The Clearing House, and it will be worried about the next bright idea for money sharing that comes along. It’s got a monopoly to protect,”
wrote Dr. Ron Paul, a former congressman from Texas.
In his piece on Fox Business, Paul talked about why it is bad that the federal business is entering into the crypto market.
Unlike private companies, there is no guarantee that the federal government would adhere to market discipline as it doesn’t have the fear of going out of business if it doesn't develop an effective product.
Its latest “inevitable” idea to create a cryptocurrency exchange to compete with and even replace physical cash is a bad one said Paul as just like always Fed just wants to “choke off any competition to its monetary monopoly.”
Fed is Late to the Party & coming with one Bad Idea after another
Back in August, this year, the Fed also announced “another bad idea” called FedNow that will speed up transaction processes.
Speed is great but “the Fed is late to the party,” said Paul as he points out that the Clearing House, a couple years back, launched a real-time payment system that now reaches half the banks in the country and is expected to expand its reach within a year.
“FedNow would seemingly not compete on a level playing field; it would simply use the power of the federal government to crush a private-sector competitor,”
He further argues that if the central bank board believe blockchain will ultimately replace real-time payment services like FedNow, why invest 3-5 years in building one from scratch.
The Fed, according to him should “stay out of the way” and let the private sector get involved to settle this debate. But it is set on itself to not only be the regulator of all monetary exchanges but also to participate in the business.
“It’s Got a Monopoly to Protect”
By participating in the market the Fed is counting on people always choosing to work with them rather than choosing a private company assuming it would make their business look better to the regulator.
“The Fed cannot handle real competition, and so it is trying to shut it down,” said Paul adding it is worried about Bitcoin and the “next bright idea for money sharing” that could affect its monopoly.
Paul wants the government to “open up the field for new forms of money,” reiterating the way he did with the “Free Competition in Currency Act.”
In his closing statement, he calls for allowing companies to compete to get the next PayPal.