Tim Cook’s Cryptocurrency Comments – TMO Daily Observations 2019-10-04
Andrew Orr and Bryan Chaffin join host Kelly Guimont to discuss Tim Cook’s comments about Libra and the IMF’s statement on cryptocurrency.
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Interesting discussion. Despite the trappings of the Federal Reserve Act, The US Federal Reserve is a private company, independent of government, that employs the government to issue currency based on its policy decisions. The Federal Reserve Act ‘legitimises’ the Federal Reserve System, but does not control it.
Libra and crypto in general, is an argument about turf. Which private company controls the ‘money’ or means of exchange if you prefer. The powerful conglomeration of banks that make up The Fed will not go quietly. The Secret Service website states plainly that its first priority is to protect the US banking system, then the President and other important people. There is no higher priority public or private than preserving the banking status quo. Look at the ‘bailouts’ when the sub-prime house of cards ‘crumbled’.
The actions of both Apple and Facebook could be viewed as attempts to get inside-the-tent. Apple partnering with a powerful bank and Facebook linking Libra to (among other things) various currencies. Despite the size of both companies, they do not have the power or, most importantly, the political connections to move the needle here. If anyone, including bitcoin could, Apple and Facebook are most likely to try, if not succeed. Federal Reserves around the world are deeply entwined with governments, protecting their fiefdoms.
It will be fun to watch other private companies or even orgs try to move in on the banks’ turf, but if you don’t think banks are all over crypto, you are a little naive.