Larry Summers, a former U.S. Treasury secretary and chief economist at the World Bank, said cryptocurrency would be regulated in a better way rather than being considered an independent paradise.
Larry Summers sees the benefits of crypto from tight control
Lawrence Summers, the Treasury Secretary in the Clinton administration and director of the White House National Economic Council in the Obama administration, spoke about controlling cryptocurrencies during an interview with Bloomberg on Friday. Emeritus, former chief economist at the World Bank, Summers is currently president of Harvard University.
He was asked why regulators around the world were “deeply skeptical” about cryptocurrency. China, for example, is cracking down on crypto activity. Summers began by saying that the term “crypto” suggests a “desire for privacy in the case of large sums of money”:
When you are secretly financing large sums of money, you run the risk of money laundering, you risk aiding and abetting various types of criminal activities, you are at risk of robbing innocent people.
“The truth is we wouldn’t have an effective aviation industry if we didn’t control aircraft safety,” he added. “If we don’t control automobile safety, we won’t have the transportation system we have.”
He added that the blockchain-based payment industry is going to be better regulated in a better way rather than trying to be a “sort of freedom paradise”.
I think the crypto community needs to recognize this, and work collaboratively with the government and if they do. I think this innovation could be one of the most important innovations of this period.
The former IMF chief economist noted that some people believe that cryptocurrency is “going to be a kind of freedom paradise where we will not be able to enforce banking rules, as your customers know.” [KYC], Where we will be able to transfer money freely and avoid paying taxes. ”
Summer commented, “I think it’s a recognition that all industries need to come to their importance systematically,” adding:
This is not the complete opposite of what big technology companies discuss. They need to have a regulatory structure. They don’t just need it to protect their consumers, they need it to protect themselves.
In conclusion, he said, “Without our strong SEC, we would not have placed the New York Stock Exchange at the center of the world’s stock market” in time. “
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