There are rumors that two of the possible members of the economic team of the President elect Joe Biden, they have deep knowledge about Bitcoin and cryptocurrencies.
Notably, some documents show what is rumored. That Biden’s nominees might have insight into Bitcoin.
As a fun fact, Biden has not directly questioned Bitcoin. In fact, in July of this year, he confessed that he does not own any Bitcoin.
Possible Members of Joe Biden’s Team and Their Knowledge of Bitcoin
It is true that they named her as the main contender for the post of Secretary of the Treasury. He has served as an authority on Blockchain and cryptocurrencies.
Specifically, in his role as a member of the Board of Governors of the Federal Reserve. Which led a joint effort by the Massachusetts Institute of Technology (MIT) to investigate CBDC.
Lael Brainard has made public comments about cryptocurrencies, digital currencies of the main banks (CBDC), Stablecoin, Smart Contracts and Blockchain.
By the way, in 2019, Brainard talked about Bitcoin:
“Bitcoin, was announced as a new type of digital money that would address friction in payments. And it would serve as a unit of account and store of value without the need for centralized governance. ‘
In parallel, The Wall Street Journal reports that Gary Gensler, former chairman of the Commodity Futures Trading Commission (CFTC), could advise Joe Biden on the oversight of Wall Street.
It’s also true that Gary Gensler wrote a report to Congress on monitoring new assets in the digital age.
Next, Gensler noted that Bitcoin and cryptocurrencies have “led to healthy debates within the central banking and economic communities. Mainly, on the pros and cons of central banks issuing retail central bank digital currencies (CBDC)«.
Specifically, on November 10, it was ratified that Gensler would lead the financial policy transition team for the president-elect of the United States, Joe Biden.
Documents showing understanding about Bitcoin
Below are six papers that provide some details of Brainard and Gensler’s understanding of Bitcoin and cryptocurrencies.
1- Lael Brainard’s speech on October 7, 2016 entitled «Distributed Ledgers Technology«.
Brainard shares how the Fed is paying close attention to Bitcoin and Blockchain technology. Recognizing that this may represent the most significant development in payments, clearing and settlement.
October 2-16, 2019. Digital Currencies, Stablecoin, and the Evolving Payment Landscape, by Lael Brainard.
Bitcoin was announced as a new type of digital money that would address friction in payments. And it would serve as a unit of account and store of value.
3- August 13, 2020. Update on digital currencies.
Incidentally, Brainard mentions how digital currencies, including CBDCs, present opportunities. But there are also risks associated with privacy, illegal activity, and financial stability.
4- 23 April 2018. «More than 1000 ICOs do not comply with the law».
All things considered, Gensler describes the lack of a public policy framework for Blockchain tokens.
July 5- 17, 2019. MIT keynote speaker.
Basically, Gensler highlights the overall amount of risk that Facebook’s proposal brought. Including investor protection, privacy, systemic risk, protection against illicit activities, monetary policy and others.
6- 20 November 2019. «Cryptocurrency and national insecurity«.
For Gensler, exploring a simulation of how CBDC used by other countries can harm the United States.
In closing, it is clear that they have the knowledge and understanding to provide the US markets with regulatory clarity for Bitcoin and cryptocurrencies. Of course, in case that is a priority within the Joe Biden administration.
I retire with this phrase from Mahatma Gandhi: “We win justice faster if we do justice to the opposing party”.