In an interview on CNBC’s Squawk Box, Brian Brooks, former head of the currency auditor’s office, spoke about the regulatory hurdles for Bitcoin. Referring to a recent speech by the Fed chairman, Brooks said that people “migrated to Bitcoin” because of the risk of inflation in the US dollar.
Fed chairman Jerome Powell gave a speech at the Bank for International Settlements Innovation Summit, claiming bitcoin could be a substitute for gold. Powell’s statements, however, were contradicting itself, claiming that the precious metal was not a store of value like the US dollar.
The former OCC chief claimed that the Fed had increased the money supply by 40%, making the country’s currency “at least 40% less good as a store of value”. Brooks then highlighted the difference and the possible fundamental weakness of the dollar:
The dollar may not be backed by anything … cryptocurrencies are actually backed by something. They are supported by underlying networks. When you buy crypto tokens, be it bitcoin or something else, you are buying part of a financial network that is designed to do all kinds of things.
Over the past two years, the market and technology behind cryptocurrencies have matured. Brooks believes this explains the sector’s market cap spike to nearly $ 2 trillion. The former OCC boss added:
I think there are forces of the future at work and forces of the status quo. I think the crowd is telling you that in the future, finances will flow in these networks …
“The dollar may not be backed by anything … cryptocurrencies are actually backed by something. They are backed by underlying networks,” @BrianBrooksOCC says on #bitcoin #btc #cryptocurrencies pic.twitter.com/wnNeWzcNY5
– Squawk Box (@SquawkCNBC) March 26, 2021
The Americans will push for the introduction of Bitcoin
For Brooks, the value of Bitcoin also lies in showing that its use case could be fulfilled without financial institutions. Hence, the introduction of the cryptocurrency goes beyond speculation, Brooks added:
Bitcoin was the first sign that showed you that funding could be done on a connected, not bank, basis. Bitcoin was settled for $ 61 billion yesterday as this network was taken over by people who used to go to the bank.
Innovations in the crypto market have been rejected by regulators like the SEC and the Fed. Brooks believes that even if US authorities try to stop Bitcoin, US citizens will apply enough pressure to get regulatory approval. Comparing Bitcoin and cryptocurrencies to the on-demand transport service Uber, Brooks said:
You can absolutely fight City Hall. Remember, every mayor and taxi inspector tried to stop Uber. But 50 million Americans wanted it and now we have it. It will be the same with crypto.
At the time of writing, Bitcoin was trading at $ 56,012, up 4.7% on the 24-hour chart. Over the past week, Bitcoin has slipped (-3.5%) to the lows of $ 50,000 but appears to have regained some important upward momentum.
BTC with moderate gains on the 24-hour chart. Source: BTCUSD Tradingview