Tuesday, July 27, 2021

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    “It’s okay to buy Bitcoin as a gold replacement”

    Bitcoin (BTC) could be a “scam” for the former president of the United States, Donald Trump, but the former Treasury secretary appears to have taken a 180-degree turn to the first and best known cryptocurrency in the world.

    In statements to CNBC on Wednesday, Steven Mnuchin confirmed that his perspective on Bitcoin had “evolved.”

    Mnuchin: Bitcoin’s stance has “evolved a bit”

    The Trump administration was known for its derogatory tone about Bitcoin in public, and those who expected Trump’s backing they were eventually disappointed.

    Own Mnuchin was unwilling to offer support during his tenure at the Treasury. but his most recent comments reveal a clear softening of his stance.

    “I think my point of view has evolved a little bit, but it’s pretty consistent,” he told the network.

    “The first part is that I think the underlying blockchain technology is really amazing and has a lot of different things, particularly in fintech and finance. I think as far as Bitcoin is concerned, if people want to buy Bitcoin as a substitute, it’s no different than buying gold or some other asset, that’s fine.”

    Gold yield (blue) versus BTC/USD pair (orange) from 2020. Source: TradingView

    Mnuchin added that he “wouldn’t want to have” Bitcoin in his wallet, but he emphasized that he was not against others adopting him.

    Continuing expressed the desire for Bitcoin to have a “full BSA and regulatory compliance.”

    “In fact, under the OCC last year, we approved that banks could guard it, and the reason we did that is because we wanted to make sure this was becoming the regulated world.”

    His words drew praise from Bitcoin circles, and Saifedean Ammous, author of The Bitcoin Standard, Qualified changes like “nice to see”.

    Bitcoin still has few political allies

    Mnuchin’s perspective now sounds increasingly at odds with Trump’s, who last month he flatly called Bitcoin a “scam” in an episode that ultimately failed to impact market sentiment.

    meanwhile the image of current President Joe Biden has yet to offer a lot to Bitcoin advocates. The secretary of the Treasury, Janet Yellen, has expressed her concern about cryptocurrencies more broadly, and high-level politicians are at odds over how to address it.

    It’s not just a U.S. predicament. U.S.: El Salvador’s pass of a legal tender bitcoin law in June provoked backlash from global financial bodies, including the World Bank and the International Monetary Fund.

    The law, which will take effect in September, it has no comparison so far anywhere in the world. Paraguay, which introduced a regulatory bill on Bitcoin this week, has revealed no plans to adopt a “Bitcoin standard.”


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