Crypto is too big for partisan politics

Every major American problem seems to be dragged into the “red versus blue” political dichotomy these days, and now it’s cryptocurrency’s turn in the barrel. Following a recent somewhat tense testimony between the Chairman of the US Securities and Exchange Commission, Gary Gensler, and the Senate Banking Committee, Politico confidently said, “Crypto becomes partisan. “

While Capitol Hill fireworks may make it seem like this is so, the reality is that crypto doesn’t have a natural partisan bent – it’s a universal tool that has the potential to benefit everyone. the world in every community.

Kristin Smith is the Executive Director of the Blockchain Association, a Washington, DC-based lobbying group. This editorial is part of CoinDesk “Politics week” a forum to discuss how regulators view crypto (and vice versa).

Attempting to present cryptocurrency as a Republican or Democratic-leaning technology demonstrates a cruel lack of understanding of digital currency and its origins. Bitcoin emerged during the Great Recession, a time when millions of Americans suffered from the cascading failures of centralized government watchdogs and overpowered large financial entities. Crypto innovators wanted to create a system that gives everyday Americans full control over their financial futures and digital lives.

According to the principles of decentralization, digital currencies are designed to be inherently inclusive and open to all. Whether you live in Manhattan, New York, or Manhattan, Kansas, and have the option of going online, you have equal access to blockchain networks and all of their benefits.

This is one of the reasons why the public popularity of crypto is increasing. According to investigation, approximately 46 million Americans own some form of digital currency, and a clear majority of the country will consider owning it in the future. Crypto’s growth will not only benefit those who have always had access to traditional financial markets and services. According to a study by the University of Chicago National Opinion Research Center (NORC), cryptocurrency traders are also younger and more diverse along racial and ethnic lines.

Universality and open access to digital currency does not make it possible to be inherently partisan, which is why bipartisan groups of lawmakers are supporting it. Progressives like Rep. Ro Khanna (D.-Calif.) And Rep. Eric Swalwell (D.-Calif.) And Conservatives like Senator Pat Toomey (R.-Penn.) And Senator Cynthia Lummis (R.- Wyo.), Who have marked ideological differences in most areas, all agree that nurturing the growth of crypto is a common good for all Americans.

Lost in partisan bickering and media analysis of the Washington-based press are the real benefits that crypto networks offer users. A central advantage in an age of constant data hacks is that blockchain networks are significantly more secure, given the nature of decentralization. If network data is stored on thousands of computers, it makes it all the more difficult for hackers to access a meaningful entry point to collect and mine user data.

What about basic access to financial services? According to research by the Federal Deposit Insurance Corp. (FDIC), about 7 million Americans still do not have access to a bank account – people living in areas ranging from rural to urban centers. Many of these people find it difficult because of the entry costs of opening or maintaining a bank account or because they have difficulty getting to a physical bank.

By moderating the power of traditional intermediaries such as banks and other financial clearinghouses, blockchain networks provide users with a much simpler and more profitable option for managing their money. They eliminate expensive fees, remain accessible 24/7, and frequently process transactions faster.

We haven’t yet discussed the power of decentralized finance protocols (DeFi) to further open up the world of financial services. Crypto lending platforms, like Compound and Aave, have the potential to revolutionize peer-to-peer and global lending practices. Filecoin, the decentralized storage network, is taking steps to completely change the way we think about storing our most important data.

See also: Representative Tom Emmer Wants Stable Coins on CBDCs – Interview

And, going back to one source of the latest financial crisis, DeFi protocols could open up another market: home loans and mortgages. What if a DeFi protocol could be designed to continuously analyze all available mortgage offers to ensure that a customer gets the best possible deal, rather than relying on the traditional process where a user is thank you for the rate his bank is willing to give him? ?

Certainly, the scenarios described above could be seen as non-partisan. We think they have broad support among the American people, and probably also in Congress, if we eliminate the attempted “red-to-blue” comparison that we’ve been so conditioned to think is natural. We have a choice: to continue to feed the nascent crypto industry in this country or let the demons of our partisan political system hinder the next wave of cutting edge financial technology.

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