Gary Gensler Faces Pushback Over Bitcoin Views
During an interview with CNBC’s Joe Kernen, SEC Chairman Gary Gensler received criticism for his negative view of Bitcoin. Kernen interrupted Gensler multiple times, challenging his beliefs about the cryptocurrency.
Comparing Bitcoin to Fiat Currencies
The discussion between Gensler and Kernen included a comparison of Bitcoin to traditional fiat currencies. Gensler argued that there is a significant economic difference between the two when it comes to their use as a medium of exchange. Kernen, on the other hand, praised Bitcoin’s lack of ties to any nation or central bank, highlighting its decentralized nature.
Gensler’s View on Centralization
Gensler countered Kernen’s argument by stating that Bitcoin is actually centralized due to its concentrated trading activity on corporate exchange platforms. Kernen acknowledged that the underlying blockchain technology is decentralized, but Gensler remained unconvinced about the value of Bitcoin.
The Value of Bitcoin’s Ledger
Kernen emphasized the special nature of Bitcoin’s ledger, which is accessible to everyone and prevents double-counting of transactions. He argued that this immutability gives Bitcoin inherent value. When asked if he thought Bitcoin had more value than an Oracle database, Kernen responded by expressing trust in Bitcoin over central banks.
Bitcoin and Money Laundering
Gensler raised concerns about Bitcoin’s role in ransomware attacks, where cryptocurrencies are often used due to their anonymity and irreversible transactions. However, Kernen pointed out that cash remains the dominant method for money laundering.
Approval of Bitcoin Spot ETFs
In a statement regarding the approval of Bitcoin spot ETFs, Gensler clarified that it did not mean an endorsement of Bitcoin itself. He referred to Bitcoin as a speculative asset.
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