The renowned American economist named the main cryptocurrency “digital gold.” Although he does not see a complete adoption coming in the future, he does believe that this technology is endurable.
Lawrence Summers, former US Secretary of the Treasury from 1995 to 1999 and former director of the National Economic Council from 2009 to 2010 said in an interview that bitcoin (BTC) might end up being critical for e-commerce. Also, he stated that “cryptocurrencies are here to stay” and that they will play important roles in the system for quite some time.
In a television interview that took place in Bloomberg, the former director of the World Bank stated that there is a long-standing human desire to own an asset that can look like an alien to the day-to-day agenda of governments.
In that sense, the secretary also added that gold has served as the primary asset of this type for quite a long time while qualifying cryptocurrencies as digital gold and assured that they have a chance to become a consensual way of preserving wealth.
Regarding the future of cryptocurrencies, Summers said that if cryptocurrencies reached half or even a third, the value of gold, these currencies would go through a greater appreciation from current levels. This position would lead them, according to a general criterion, to remain working in the system for a longer time.
He also led his omens about crypto assets to context by putting on hold situation, he doubts that in the future most payments using bitcoin or cryptocurrencies will lead to a ‘libertarian paradise’, instead they will become essential for the online market.
The Treasury Department’s improvements
Lawrence Summers, a prestigious American economist who is currently a professor at Charles W. Eliot University, President Emeritus of Harvard University. Beyond Summers Ideas today’s President the United States Department of the Treasury has a position that aims at a stricter regulation of cryptocurrencies.
This latter entity is even training people to investigate bitcoin addresses. The measures intend to learn more about people on the blacklists related to terrorist activities, drug trafficking, and other criminal activities.
Janet Yellen, on the other hand, has shown a change of mind which favors cryptocurrencies and their community more than a while ago. In some of her speeches during 2021 she had shown a more flexible position towards cryptocurrencies, she has stated that she will advocate for legitimate use of these new technologies.
These statements are surprising because in her previous position as chair of the Federal Reserve, specifically in December 2017, she spoke about bitcoin as a “highly speculative” asset.
In addition, the professor of economics, who was recognized at the time as the second most powerful woman in the world, recalled at that moment that Bitcoin was not a legal tender in any country or the world.
By: Jenson Nuñez
