U.S. congressman says Bitcoin has ‘no societal value’, only suitable for tax evasion

United States congressman from Califonia Brad Sherman has once again slammed Bitcoin (BTC), stating that the flagship cryptocurrency has ‘no societal value,’ citing the lack of an intrinsic value and ability to facilitate crime. 

Speaking during an interview with CNBC on September 10, Sherman dismissed Bitcoin’s potential of becoming a future currency, stating that it only has an advantage over the dollar because it can aid crimes like tax evasion. He also suggested that Bitcoin has no backing to help improve the economy. 

“Suppose it becomes a currency [Bitcoin]. In that case, it will only be because it can outcompete the dollar for some pretty big markets, especially the tax evasion market, and that’s why it has no societal value. We want people to invest in assets that will build the American economy,” he said. 

Chances of banning Bitcoin 

Interestingly, Sherman, who has been pushing for outlawing Bitcoin, admitted that it is near impossible to ban the asset at the moment but noted that with regulations, the government can regain ‘some control.’

“The critical thing is to impose the know your customer and anti-money laundering laws on crypto. Once it’s clear that those laws are set, crypto loses the one thing it aspires to be, and that is successfully competing with the dollar by having an advantage over the dollar,” he added. 

According to the lawmaker, if Bitcoin is successfully regulated, it might lose some of its interest because the laws will expose the asset’s inability to match the dollar. 

The power of Bitcoin

Overall, Sherman is part of U.S. lawmakers who are vocal about banning Bitcoin because there is ‘too much power and money’ behind cryptocurrencies. Due to this ability, Sherman believes the government cannot currently ban the asset. 

“I don’t think we’re going to get [to a ban] anytime soon. Money for lobbying and money for campaign contributions works, or people wouldn’t do it; and that’s why we haven’t banned crypto. We didn’t ban it at the beginning because we didn’t realize it was important, and we didn’t ban it now because there’s too much money and power behind it,” he said. 

In the past, Sherman has compared Bitcoin to the Ponzi scheme noting that investors only purchase the asset to sell it at higher prices. 

It is worth noting there is a comprehensive bill before the U.S. Congress by Wyoming senator Cynthia Lummis on crypto regulations. Leaders supporting digital assets have maintained that cryptocurrencies must be regulated and not banned. 

The regulatory aspect has also attracted interest from the White House, which commissioned a study into the development of cryptocurrencies. In this line, President Joe Biden’s administration also raised concerns that the production of cryptocurrencies such as Bitcoin might hinder ongoing efforts to combat climate change, citing the digital asset’s impact on the environment.