Former Texas congressman Ron Paul was on CNBC earlier talking about his support for innovation in the cryptocurrency space. “I’m for the least amount of regulation. I don’t know what’s gonna happen to cryptocurrencies. I think it’s a great idea, and I only have one rule, no fraud.”
Check out clip from CNBC below, we’re also including the transcript in case you can’t see the video. All rights belong to CNBC and please refer all credits to CNBC.
seems like everybody has an opinion about crypto and Libra, especially in the past two weeks. How do you think the needle has moved, if it all?
Well, I have a very strong opinion that I don’t know what’s gonna happen, but no, there is a lot of talk. I’m all for crypto currencies and Blockchain technology because I like competing currencies, but I don’t know the technology, but it bothers me when you hear about governments, whether their local governments, their countries, and say, you’re not allowed to do this and not allowed to do that because historically, governments always have to have my monopoly control over money and credit. Obviously, that’s why we have a Federal Reserve, instead allowing the market to operate. So it’s this thing, this desire to regulate and find out. But I I think that’s always because the government’s they’re afraid they’re gonna lose some tax revenues if they’re not careful. But I’m for I’m for the least amount of regulation. I don’t know what’s gonna happen to cryptocurrencies. I think it’s a great idea, and I only have one rule, no fraud, You know, if you’re going to compete with the government But governments aren’t very tolerant of competition, and they’re not. They’re not even tolerant with using the Constitution to compete with the theatre dollar because Golden Silver you can’t use it. So I’m for competition and we’ll have to wait and see what the market decides, Along with overcoming government regulations to see what will happen to crypto.
How much faith do you have that some of these platforms can can weed out bad actors, bad actors in this country? But more importantly, from with outside,
well, I think they can. But if there’s a blatant fraud, I think the government has to get involved. But I think the market probably has weeded out some already. And yes, I think they’re capable of doing about what, what the problem is that you never have a truly free market. There’s always something the government says or does introduce a regulation. But they did that with gold to just think gold was confiscated, their talking about taxing gold and regulating it so they’ll do that with crypto as well. But no, if the mark is a lot to operate, the bad guys get weeded out in all forms of economic activity. But it’s hard to find that anymore. There used to be a day when you had more competition, and I think in the last couple years we’ve moved in the right direction with a little less regulation. But we’re a long way off from true competition.
Well, it seems like you need some kind of regulatory structure to even determine if there is fraud. And, of course, their concerns about money laundering and the rest with Cryptocurrency. So what is you think that minimum amount of regulation that’s necessary or acceptable?
No, I don’t think you go looking. I mean, we just went through a lot of.
activity here over the presidential election because they said there is and we’re going to find it and we’re gonna prove it. No, you have to have a charge made. Somebody has to say, you know, somebody did this, but to go look and say, Well, we want to prevent it. It’s sort of like prior restraint in the media. You don’t go looking for somebody saying something wrong or that you have to allow something happen to have a reason. Otherwise, you just go like crazy with regulations, which is essentially what the world has done in our country has done it. So no. I think that the government has a role and somebody has a case that there is fraud. I think it should be investigated, but to go looking. And then they say Just think of all the regulations since the nineteen thirties in order prevent the ups and downs of the business cycle. And every time we have a bad one,
Congress goes in and rights, even Mohr regulations. But it never prevents the problem because they won’t deal with the problem, which is the manipulation of the interest rates by the Federal Reserve.
Congressman. I think that sort of gets right. The point why I wonder whether you think that an actual free market where Cryptocurrencies could actually be established and maintained because at the heart of crypto I mean, you’re talking about establishing currencies or coins that could essentially dilute or compete with the very central banks and their monetary policies that are basically running markets right now.
Well, I don’t think anybody knows the answer. I have my questions.
about it. But what I want to do is legalise the.
freedom of choice.
Absent blatant fraud, people committing fraud. So on. And I also, you know, I have fallen Hayak, who who’s talked about.
currency choices and he talked about different ways of doing this. A basket of currencies, different things. But I’m pretty old,
fashioned, too, about what history shows about money, and they want a precise definition of the money. The big question is, is, can a crypto currency for Phil that requirement? That you have a precise definition of the unit of account and that it’s consistent? And right now I mean, when you look at all the different Krista Cryptocurrencies available, you say, Well, which one is going to survive? What happens if one goes down? The other goes up. So there’s a lot of questions, but I don’t know enough about the technology. Oh, I know is I’m interesting, that technology. I think Blockchain technology is what we should be talking about, not crypto his money, because that’s a question that’s going to be solved by the marketplace. And it has to contend with government regulations. So that’s no easy task.
I wonder what you think crypto enthusiasts like in Bitcoin and the other crypto currencies to gold. They call it digital gold. Do you agree?
Well, I think there’s some similarities, but there’s some some things that are very, very similar because the unit of account is an ounce of gold. You know, you could put in your hand. You can see the, uh, the crypt, though you can’t quite do this, though the people who like Crypto will say so. But I still but locked in with thinking about the regressive regression therapy, which says you have to go back to that unit that was once cold money like our dollar originally started as a silver dollar and it was connected to it. Just think of the difficulty of the str. They were gonna create money out of thin air and get people to use it back in the seventies. Nobody paid attention to that, and I think that’s one of the problems with the euro right now. It did not start start off with somebody knowing what a euro wass and it’s having problems. But all currencies are our fee at now, and that’s why people are.
some of the central bank’s. Many are buying gold and looking at alternatives and looking at crypto, and I think that’s good, but sorting this all out is a real challenge.
Finally, Congressman, a Treasury on Friday said Government Kurata cash by September. Mnuchin urging Congress to raise the debt ceiling before the August recess. Do you think we’re gonna have fireworks on the debt ceiling later this year?
Oh, political fireworks. A lot of talk, but it is in the interest of Republican and Democratic leadership. Never do not pay the bills that is not goingto happen. The only way that would stop is if they ran out of electricity or something in watching where they couldn’t run the printing presses and run to computers. No, it’ll do. The fussing and Joo try toe add you. Tae and the Democrats want to remove some of the limitations on spending, but the Republicans are hesitant. They need to spending to infrastructure and militarism the empire. So, no, both sides really need it. There is no way that it will be just a political football. It happens quite frequently, but it’s not going to put any restraint on the spending, any restraint on the expansion of the deficit, which is the real problem that we have to face up to. It