The hypothesis comes back into fashion on and off, recently it has been talked about more and more. Bitcoins instead of money? Gary Gensler answers.
Gary Gensler, president of the SEC (Securities and Exchange Commission), spoke once again on the now age-old question of the use of digital currency to replace physical currency. A scenario that is frequently proposed and re-proposed but which has not yet convinced observers, analysts and industry players. Only recently did the well-known banker speak at the NYU School of Law in Manhattan, and more than a few questions about the world of cryptocurrencies came from the audience.
Gary Gensler, president of the SEC, returns to talk about cryptocurrencies and their use for payments – trading.it (photo source ANSA)
It doesn’t even need to be said but Gensler appeared very skeptical regarding the possibility that cryptocurrencies will replace the current monetary system. His words leave room for few interpretations: “Economic communities, throughout history, have always tried to tend towards a single currency because it is a store of value, a means of exchange and a unit of account.” However, it does not rule out that in the end it will be the people who decidein particular those that find themselves pulling the strings of the markets.
Gary Gensler: “Bitcoin instead of money? Difficult”
Difficult if not impossible for Bitcoin and cryptocurrencies become real payment instruments officials. Or at least this is the opinion of Gary Gensler – he is head of the SEC – who at the end of his speech at the NYU School of Law in Manhattan answered more than a few questions from the public, going unbalanced on the subject. “The single currency has positive network externalities, it is convenient for everyone to participate in just one network because, in fact, everyone is involved”.
For Gary Gensler, cryptocurrencies are unlikely to replace physical money – trading.it
The fact that digital currency is already used where “the forced exchange rate of other currencies” exists, however, provides at the same time a further topic for discussion, namely that people are managing to exploit a different monetary system from that imposed by the political authorities. “We have one and indeed more independent monetary networks, distant from political power,” explained Gensler and added that it will be the same people – in particular those who move the markets – who will decide limits and boundaries.
Finally, without beating around the bush, he declared: “Someone won’t care about the definitions of ifs and whens, which those who don’t have certain needs can’t even understand.”
