Anti-crypto technologists are urging U.S. lawmakers to resist the influence of the pro-crypto lobby.
According to reports, Harvard lecturer Bruce Schneier said that the claims made by blockchain advocates are “incorrect.” He added that the technology is not secure or truly decentralized. According to Schneier, a system that can “lose your life savings” when you forget your password is an “insecure system.”
Schneier joined other computer scientists and academics in signing a letter criticizing encryption and blockchain and sending it to U.S. lawmakers in Washington. Software developer Stephen Diehl supported the idea and signed the letter. Diehl noted that the letter is an anti-lobbying effort, as cryptocurrency proponents only “say what they want” to politicians.
In the letter, the signatories claim that cryptocurrencies are “risky, flawed and unproven digital financial instruments.” Academics are trying to dissuade regulators from supporting efforts by pro-crypto lobbyists to create a “regulatory safe haven” for cryptocurrencies.
Efforts to crack down on cryptocurrency lobbying have emerged from 2018 to 2021 as lobbyists representing cryptocurrencies continue to increase, according to Public Citizen. In addition to lobbyists, the budget spent on cryptocurrency lobbying has grown from $2.2 million to $9 million over the years.
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Just yesterday, the Federal Reserve released a study examining the potential impact of central bank digital currencies (CBDCs) on the implementation of U.S. monetary policy. The study highlights what could happen if a CBDC were implemented.
Meanwhile, analysts expressed mixed views on the Fed’s quantitative tightening scheduled to begin on Wednesday. Pav Hundal, an executive at the Swyftx exchange, told Cointelegraph that this could have a negative impact on the crypto market. On the other hand, Nigel Green, CEO of deVere Group, thinks its impact may be minimal.