Former OCC acting comptroller Brian Brooks asserted that cryptocurrencies such as Bitcoin”really are endorsed by some thing.”
Brooks gave his opinions at a CNBC Squawk Box interview using Joseph Kernen to unpack recent Bitcoin-related opinions by the U.S. Federal Reserve seat Jerome Powell. Before this week, Powell claimed that cryptos such as Bitcoin are”basically a replacement for golden” but in precisely the exact same time they’re”not backed by anything.”
“He said it is like gold but maybe not a store of value. Does he not believe gold is a store of value”
In reaction, Brooks reported that there are a lot of reasons why people have flocked to Bitcoin within the last year, such as the Fed radically increasing the dollar source. “So once you do this, it usually means the dollar is a 40 percent less great store of value than it had been a year ago. And that’s only one reason people elect to Bitcoin,” he said.
“The point I truly want make would be that the dollar might not really be endorsed by whatever […] However cryptocurrencies really are endorsed by something. They are backed by underlying components, and what you are buying when you get a crypto token — anything it’s Bitcoin or whatever else — you are purchasing a bit of a financial system constructed to transact all types of stuff”
Brooks said that the rising amount of network programs over the last couple of years is the most important reason the crypto sector is worth nearly a $2 trillion now. I think that audiences are telling you that these networks are in which financing are moving in the long run. I want be a part of this,” he reasoned.
U.S. governments have been actively exploring the idea of a digital buck. On Monday, Powell stated the Fed wouldn’t proceed with the electronic dollar without assistance from Congress.