U.S. Government
CBDCs ‘concocted in hell by Satan himself’ says ASI president Rich Checkan
Rich Checkan described CBDCs as the spawn of Satan, and thinks that Bitcoin is still a speculative asset and not a currency alternative yet.
Rich Checkan, the president of Asset Strategies International (ASI) has described central bank digital currencies (CBDCs) as a product that was “concocted in hell by Satan himself.”
ASI was founded in 1982 and deals in alternative assets such as precious metals, foreign currencies and pre-1933 U.S. gold coins, and offers a precious metals trading platform.
Speaking during an interview with streaming financial news provider Kitco News on July 27, Checkan slammed CBDCs due to the threat they posed to individual privacy, noting they give the state the ability to monitor every transaction you make and track your entire life.
“I think central bank digital currencies were concocted in hell by Satan himself,” he said, and asserted that they will give governments an incredible control “over everybody’s bank accounts” which will “create a void of privacy for every individual citizen.”
The U.S. is behind the curve on CBDC rollout in comparison to China, which has already deployed widespread trials of the digital yuan in its financial system. However, the Federal Reserve has warmed up to the idea in 2021, and is currently in the process of researching the risks and benefits associated with adopting a CBDC.
During the interview, Checkan was asked if he thought Bitcoin posed a threat to fiat currency and CBDCs. The ASI president stated that it’s too early to tell as he thinks Bitcoin has performed as a speculative asset so far, but hasn’t been tested enough as a currency to become a threat to the dollar yet.
“It’s not a threat, one of the options for Bitcoin is to be a form of currency, but there’s not widespread adoption and penetration [...] so we really haven’t tested that model. Which is why I think it’s partially acting as a speculative asset.”
“I think we need deeper penetration and then we will see, if it becomes a threat, what the government is capable of doing to hold onto its power position,” he added.
Related: Countries representing over 90% of global GDP are exploring CBDCs
Unlike other figures in the precious metals sector, who are often pro-gold and anti-crypto, Checkan stated that there is a place for both, as he thinks they perform a “different function for your portfolio.”
Checken views gold as a store of value and advocates allocating 10% of portfolios to the asset. He views Bitcoin as a speculative asset that may become a store of value in the future and suggests a 1% to 2% allocation in a portfolio, with regular cash outs to bank profits.
Michael Saylor doesn’t think Bitcoin is ‘going to be currency in the US ever’
The MicroStrategy boss thinks Bitcoin is a form of property and points out that the U.S. Government is not threatened by other forms of property.
MicroStrategy CEO Michael Saylor thinks that Bitcoin is more like digital property than digital currency.
He was speaking on the July 15 edition of the “Coin Stories” podcast with host Natalie Brunell. Asked if he thought that Bitcoin was a threat to the U.S. dollar Saylor replied:
“I would call it a digital property, it's a threat to property, it's particularly a threat to other forms of property: gold is property, real estate is property. I don't think the United States government is threatened by real estate or buildings or companies or gold.”
The comments follow on from Saylor's assertions earlier this week on the Scott Melker’s Wolf of All Streets podcast, in which he stated that “I don’t really think that Bitcoin’s going to be currency in the US ever. Nor do I think it should be.”
“And what it’s doing is it’s demonetizing other forms of property,” he added as he outlined that people are now weighing up whether to purchase Bitcoin instead of opting for traditional investments such as real estate, stocks, starting a business, or buying gold.
MicroStrategy has been gradually accumulating Bitcoin since August 2020, and the firm now holds 105,085 BTC worth around $3.3 billion at today’s prices.
Saylor told Brunell that even if Bitcoin crashes in the short term, MicroStrategy has no intention to sell and is prepared for the volatility that will occur in the future.
He emphasized the key is to HODL through periods of market downturn and FUD, and pointed to giants in the tech space such as former Microsoft CEO Steve Balmer, who didn’t sell his stocks when the price crashed in the past:
“What was the brilliant thing that Steve Balmer did in order to be worth $100 billion? yYu know, he didn’t sell Microsoft.”
Related: Bitcoin volatility will always disappoint some investors: Michael Saylor
Saylor also referenced a quote from Warren Buffet which asserts that “If you aren't willing to own a stock for ten years, don't even think about owning it for ten minutes,” and cited that even Amazon stock has recovered from 80% crashes in the past.
“One iPhone 12 in a hundred years will be worth nothing, so the product that Apple is selling isn’t gonna last 1000 years. The product that Bitcoin is selling is 1/21 millionth of all the money in the world. That doesn’t have to change, it just kinda has to not break,” he said.
The MicroStrategy CEO did note, however, that if the price of Bitcoin was lower than what it is today four years from now, he would have to reconsider his strategy.
Bipartisan bill to study blockchain and crypto passes US House of Representatives
The Consumer Safety Technology Act passed quickly in the House, and if enacted would require the study of blockchain tech and digital tokens.
A bipartisan bill that requires the study of blockchain technology and digital tokens passed the House of Representatives on June 22.
The “Consumer Safety Technology Act'' is centered on consumer protection and includes digital token and blockchain research. The bill passed the 117th Congress within a week of its introduction, with a resounding 325 votes in favor of, and 103 votes against.
This is not the first time this bill has reached this point however, and under the Trump administration, the bill passed the House in September 2020. It was then referred to the Committee on Commerce, Science, and Transportation before being shot down in the Senate.
Among other things, the bill calls for the Consumer Product Safety Commission to deploy a pilot AI program to aid consumer safety inspections, such as identifying consumer product hazards and tracking trends related to injuries involving consumer products.
Additionally, it calls for the Secretary of Commerce and the Federal Trade Commission (FTC) to “study and report on the use of blockchain technology and digital tokens.”
Democrat representative for California’s 9th district, Jerry McNerney sponsored the bill, which was co-sponsored by Democrat Darren Soto, along with Republicans Warren Davidson, Van Taylor, Michael Burgess, and Brett Guthrie.
The Consumer Safety Technology Act also includes two other bills touching on crypto. One is the Blockchain Innovation Act along with parts of the Digital Taxonomy Act which mandate the FTC report on “unfair or deceptive acts or practices in transactions relating to digital tokens.” Rep. Soto first introduced the latter bill in April 2019, but did not receive a single vote at the time.
Both bills are aimed at stopping deceptive acts related to crypto from individuals and “unscrupulous companies.”
Our #blockchain & #cryptocurrency bills with @RepGuthrie & @WarrenDavidson just passed the House as part of @RepMcNerney’s #ConsumerSafetyTechnologyAct. US must remain on the forefront of emerging technologies by fostering innovation & ensuring consumer protection. pic.twitter.com/vhI3FuVJJG
— Rep. Darren Soto (@RepDarrenSoto) June 22, 2021
Related: Will regulation adapt to crypto, or crypto to regulation? Experts answer
On the House Floor, Soto emphasized the importance of ensuring consumer protection from volatility and crim:
“When we look at market volatility, the use of cryptocurrency for ransomware, and recent attacks like the Colonial Pipeline and tax evasion, it’s critical that we get on the front end of this.”
The Blockchain Innovation Act requires the study of investment trends in the crypto industry, the potential risks and benefits of blockchain tech designed for consumer protection, and areas in which regulation could foster domestic innovation.