Former US Treasury Secretary Larry Summers: Cryptocurrency Will Be “Better Regulated” – Bitcoin News
Former US Treasury Secretary and World Bank Chief Economist Larry Summers said cryptocurrency would be better regulated in a healthy way instead of being treated as a libertarian paradise.
Larry Summers sees crypto benefit from strict regulation
Lawrence Summers, who served as Secretary of the Treasury in the Clinton administration and director of the White House National Economic Council in the Obama administration, spoke about cryptocurrency regulation in an interview with Bloomberg on Friday. Former Chief Economist of the World Bank, Summers is currently President Emeritus of Harvard University.
He was asked why regulators around the world are “deeply skeptical” about cryptocurrencies. China, for example, has cracked down on crypto activity. Summers began by stating that the word “crypto” suggests a “desire for secrecy with regard to large financial sums”, elaborating:
When you have large sums of money going in secret, you have risks of money laundering, risks of supporting various types of criminal activity, risks of innocent people getting ripped off.
âThe truth is, we wouldn’t have a viable aviation industry if we didn’t regulate airline safety,â he continued. âWe wouldn’t have the transportation system we have if we didn’t regulate auto safety. “
He added that the blockchain-based payments industry “is going to be better regulated in a healthy way, rather than trying to be some sort of libertarian paradise,” noting:
I think the crypto community needs to recognize this and need to work cooperatively with governments and if they do. I think this innovation can be one of the important innovations of this period.
The former IMF chief economist pointed out that some people believe in the idea that cryptocurrency is “going to be a kind of libertarian paradise where we won’t be able to enforce banking rules, like knowing your customers. [KYC], where we will be able to move money around freely and avoid paying taxes.
Summers said: “I think it’s a recognition that all industries have to come to what is systemic in their importance,” adding:
It’s not entirely different from the discussion of big tech companies. They need a regulatory framework. They not only need it for the protection of their consumers, they need it for their own protection.
In conclusion, he said, âWe wouldn’t have the New York Stock Exchange as the center of the global stock market if we didn’t have a strong SEC,â stressing, âEven though people didn’t like the rules, some of the time. “
What do you think of Larry Summers’ comments? Let us know in the comments section below.
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