Charlie Munger Says US to Ban Crypto & Should Follow China’s Lead
- According to Charlie Munger Cryptocurrencies should outlawed.
- Munger stated “cryptocurrency is not a currency, not a commodity, and not a security”
In an opinion piece titled “Why America Should Ban Crypto,” which was published in the Wall Street Journal, Vice Chairman of Berkshire Hathaway Charlie Munger urged the American government to ban cryptocurrency.
A cryptocurrency is not a currency, not a commodity, and not a security.
Murger added that the US should implement policies that ban both the creation of new cryptocurrencies and the trading of existing ones, much like China, which notably outlawed them in 2021. Munger asserted that promoters and founders of new cryptocurrencies frequently obtain coins for “virtually nothing,” taking advantage of cryptocurrency investors.
Additionally he gave two instances that might act as a guide for wise American action. The first is that China has outright banned any firms that provide trading, order matching, token issuance. And also derivatives for virtual currencies. Second, Munger highlighted that the English Parliament banned any public trading of new bonds. And common stocks beginning in the early 1700s and kept this outlaw for almost 100 years.
Munger hit the headlines in 2021 for comparing other cryptocurrencies to a “venereal disease” and describing Bitcoin, the most valuable digital asset in the world, as “rat poison.” His current position is that the federal government ought to intervene and outlaw the entire sector.