The clash between cryptocurrencies and central banks seems to be never-ending, up until now.
Since then, almost all central banks around the world, are dismissing the concept of cryptocurrency as a currency. The USA and its Federal Reserve are one of the major banks that has problems with the crypto system.
Fed Reserve On The Rocks
But now, time may change, as Federal Reserve continuously raised its baseline interest from 2.25% to 2.5%; making the investors shift their interest in the ‘tax-free‘ cryptocurrency.
Having the same position with this is the retired politician and bitcoin advocate, Ron Paul.
Paul, just like many experts, has the same stance of abolishing the central bank of USA or Federal Reserve as he quoted the agency as a ‘manipulator’ in the financial aspects of the country.
“The Fed has NO IDEA what rates should be. The Fed manipulates prices, distorts the economy, and makes decisions by looking at the ‘data’ of a distorted economy,” Paul tweeted.
End of Fiat?
Additional from this is Paul’s observation that Federal Reserve might have been experiencing a recession in the market. Because the agency was rapidly increasing the tax rate of the country– third time, this 2018.
“It is likely that the next Fed-created recession will come sooner rather than later. This could be the major catastrophe that leads to the end of fiat currency,” he added.
Paul also believes that the only solution for this crisis is the usage of bitcoin and cryptocurrencies as an alternative currency for the country.
According to him, cryptocurrencies are the future of the economy, and its implementation will certainly give change to increasing tax rates across the world.
He also implied that cryptocurrencies are possible to exist with gold-backed currency as cryptos were meant to be ‘tax-free’ for the citizens.
Aside from this, Paul demands the government to stop regulating cryptocurrencies. He said in an interview with reporter Naomi Brockwell that government knows that regulations are not always the answer for all problems, especially regarding cryptocurrencies.
However, the Federal Reserve seems to be unshaken with the claims of Paul as they were firm with their decision to not backed down, especially to their opinion of cryptocurrencies having ‘risks‘ for most investors.