Anthony Pompliano thinks United States Congressman Brad Sherman is right.
Not about Sherman’s recent call for the US government to “outlaw” cryptocurrencies. Pompliano said any such laws would be “nearly impossible to enforce.”
The outspoken founder and partner of Morgan Creek Digital Assets does, however, think that Sherman’s fears about the looming impacts of crypto are right on the money.
Last week, Sherman, a California Democrat, called up his colleagues in Congress to draft a bill banning cryptocurrencies, which he believes could undermine the country’s status as an economic powerhouse.
“Clearing through the New York Fed is critical for major oil and other transactions, and it is the announced purpose of the supporters of cryptocurrency to take that power away from us, to put us in a position where the most significant sanctions we have on Iran, for example, would become irrelevant.”
“So whether it is to disempower our foreign policy, our tax collection enforcement or our traditional law enforcement, the purposes of cryptocurrency, the advantage it has over sovereign currency, is solely to aid in the disempowerment of the United States and the rule of law.”
“While many people will claim Brad Sherman doesn’t know what he is talking about, I would argue that his statement highlights that the Congressman knows exactly what is happening. He sees the increased probability that we are moving to a world where non-sovereign currencies are the default and it sounds like he is scared.
Mr. Sherman realizes that the United States, and other countries with major currencies, will lose considerable power if they are no longer in control. While his understanding of the technology’s potential is accurate, it appears that the Congressman does not understand the improbability of being able to ban ownership of these decentralized digital currencies.”
In a blog post last week, Pompliano looked into Sherman’s largest donors, which include financial services companies such as Allied Wallet, a payment processor for credit cards and e-commerce merchants.
“Without digging too much, it is easy to see that Brad Sherman’s top donors are likely to be the first companies disrupted when Bitcoin and cryptocurrencies are successfully adopted on a global scale.
Additionally, Congressman Sherman is worried that global superpowers will have no response to Bitcoin’s decentralized, immutable, non-censorable, and non-seizable advantages. He quite literally states that cryptocurrencies have an advantage over sovereign currencies (which is the first time a politician has admitted this publicly I believe).”
Pompliano actually sees Sherman’s call for a crypto ban as a positive thing for Bitcoin and suggests that the dollar’s lessening dominance will be a slow burn. He predicts that it will weaken over “the next 15-20 years,” facing a growing number of crypto experimentations from corporate challengers, such as Facebook and JP Morgan, which are building their own digital assets.
“In my opinion, this is an incredibly bullish development for Bitcoin. There are few better advertisements for the digital currency than a current politician screaming about how unfair it is that Bitcoin is better than the US dollar. Rather than hurting the Bitcoin enthusiasts argument, Mr. Sherman is actually confirming its validity.”