Governments should stay away from cryptocurrencies: Economist, Jeffrey Tucker

World renowned economist, Jeffrey Tucker, has said that it is best if Governments and Central banks stay away from cryptocurrencies and give up on creating ‘national cryptocurrencies’.

Tucker expressed his opinions on state-backed cryptocurrencies in an editorial published in American Institute for Economic Research (AEIR). He said that very purpose of cryptocurrencies, i.e. decentralization, will be in jeopardy if a cryptocurrency is governed by a state. Instead, he feels that governments should put in more efforts in improving the system of fiat currencies and the banking system.

The very monopoly that the governments have over the financial system of a state is what, in Tucker’s view, lead to the financial crisis, inflation, government debts and even the world wars over the past century. He especially feels that it is one of the main reasons for the poverty in the world.

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In contrast to that, he says ‘Cryptocurrency is the most exciting thing in money and finance on the planet’, and that the governments shouldn’t venture into this area and strangulate the success that it has achieved in such a small span of time.

This is what he had to say about government backed cryptos,

“I’m not a believer. They won’t compete in the marketplace. They might achieve the opposite of the stated goal – the end of monopoly. Truly rivalrous competition is just now starting to exist in a sector long monopolized by governments…Thanks to decentralized-ledger technology and some impressive innovations to create digital money and banking solutions — the technology operates peer-to-peer and requires neither government nor intermediaries to operate — we are beginning to see what real choice in currency might look like.”

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