Congressional hearing on the future of money & crypto: “These innovations should be fostered not smothered”

Published in Crowdfund Insider.

As previously reported, the list of witnesses included the following individuals;

Dr. Rodney J. Garratt, Maxwell C. and Mary Pellish Chair, Professor of Economics, University of California Santa BarbaraDr. Norbert J. Michel, Director, Center for Data Analysis, The Heritage FoundationDr. Eswar S. Prasad, Senior Fellow, The Brookings InstitutionMr. Alex J. Pollock, Distinguished Senior Fellow, R Street Institute[…]

Pollock quoted Hayek in his remarks. Sympathizing with the famous economist;

“Why should we not let people choose freely what money they want to use? … I have no objection to governments issuing money, but I believe their claim to a monopoly, or their power to limit the kinds of money in which contracts may be concluded within their territory, or to determine the rates at which monies can be exchanged, to be wholly harmful. … I hope it will not be too long before complete freedom to deal in any money one likes will be regarded as the essential mark of a free country.”

While adding he did not expect a “revolution in the international monetary system,” Dr. Prasad stated;

“While reserve currencies might not be challenged as stores of value, digital versions of extant reserve currencies and improved cross-border transaction channels could intensify competition among reserve currencies themselves.”

[…]

Pollock, on the other hand, called having a CBDC one the the worst ideas of the times.

Representative Barr asked if crypto could supplant US dollars as a reserve currency? And what type of implications this may have.

Michel said it is not going to happen. The US dollar has a competitive advantage of wealth storage added Pollock.