Former OCC Director: „Bitcoin has value, US dollar may not“.
Cryptocurrencies derive „real countervalue“ from their underlying blockchain networks, according to Brian Brooks.
Brian Brooks, the former director of the US banking regulator OCC, finds that cryptocurrencies such as Bitcoin (BTC) have an actual equivalent value, unlike the US dollar.
The former „Comptroller of the Currency“ made the corresponding statement in an interview with CNBC, whereby these are a response to the recent Bitcoin Legacy statements of US Federal Reserve Chairman Jerome Powell. Powell had made seemingly contradictory comments about cryptocurrencies this week, when he first opined that Bitcoin is „a substitute for gold“, but then added that the crypto market leader „has no real equivalent value“.
CNBC host Joseph Kernen, in an interview with Brooks, was accordingly puzzled by the central bank chief’s words: „He just said that Bitcoin is like gold, but it’s not a store of value. Does he not see gold as a store of value?“
Former OCC director Brooks counters that the central bank, with its monetary policy, has most certainly ensured that Bitcoin now serves a similar function to the precious metal, because by drastically increasing the money supply, the „Fed“ has devalued the US dollar: „When you do that to that extent, the US dollar is a 40% worse store of value than it was a year ago. And that’s exactly why people are moving to Bitcoin.“
In turn, he sees the cause in President Richard Nixon’s repeal of the gold standard in the 1970s, though he disagrees with his colleague’s reading:
„What I’m saying is that the US dollar may not have any real value at all. […] But cryptocurrencies do have real value. They’re based on blockchain networks, and when you buy a unit of Bitcoin or any other cryptocurrency, you’re buying part of a financial network built for transactions of all sorts of value.“
And the swarm shows us
Accordingly, Brooks sees the rapidly growing amount of possible applications of blockchain networks as the reason why the crypto industry now has a market value of more than 2 trillion. US dollars. „I believe there is such a thing as swarm intelligence. And the swarm shows us that these networks are the future of the financial industry. I want to be a part of that,“ as Brooks concludes.
The American government authorities do not want to be left behind either, which is why the work on a digital dollar is slowly taking on concrete features. Central bank chief Powel therefore now wants to obtain parliamentary approval to move forward with the digitisation of the US dollar.