Bitcoin (BTC) does not pose a threat to governments, according to famous investor and co-founder of Soros Fund Management, Jim Rogers.
In an interview with Kitco News on January 31, Rodgers made clear that he sees Bitcoin as a medium of exchange and stressed that it does not pose a threat to governments in terms of replacing existing currencies or legal tender.
Rogers, who in the 1990s designed the Rogers International Commodity Index, a broad index of commodity futures, maintains that cryptocurrencies do not pose a threat to governments. If so, governments are likely to take action.
At the same time, he downplayed Bitcoin's global impact as a legal tender, pointing to El Salvador's adoption as a limited example. He noted that he does not expect cryptocurrencies to become widely accepted as money, because governments resist such competition.
While acknowledging the growing acceptance of Bitcoin (BTC), he expressed doubts about its legitimacy as a currency anywhere, except perhaps El Salvador, which has a population of just six million. He concluded that this alone was unlikely to have a transformative global impact.
Concerns about CBDC oversight
Looking to the future, Rogers expects widespread adoption of digital currencies, especially central bank digital currencies (CBDCs), by various governments globally.
He commented, “I fully expect that currencies will eventually be computerized. It is more efficient, cheaper, and better for many people and governments.”
However, the investor expressed concerns about the increased surveillance capabilities associated with central bank digital currencies, stressing that governments will have detailed access to individuals' financial activities.
These concerns coincide with recent statements by former US President and current Republican Party candidate Donald Trump, who recently pledged not to support central bank digital currencies if he wins the 2024 presidential election, citing concerns about their impact on personal freedoms.
He also affirmed his commitment to protecting the Second Amendment and expressed opposition to the creation of a central bank digital currency, citing concerns about potential financial settlements. He pledged to protect innocent lives and restore freedom of expression in this context.
Meanwhile, the country's anti-surveillance law for central bank digital currencies (CBDC) has been approved by the US House of Representatives Financial Services Committee, marking a move against the proposed currency.
State anti-surveillance CBDC law
On September 20, the US House of Representatives Financial Services Committee approved the Anti-Central Bank Surveillance of Digital Currencies (CBDC) Act.
The bill, introduced by Majority Whip Tom Emmer, prohibits the Federal Reserve from directly or indirectly issuing a central bank digital currency to individuals and prohibits the Secretary of the Treasury from directing the Federal Reserve Board of Governors to issue a central bank digital currency without express permission from Congress.
The legislation also aims to protect the innovation and development of any future digital money that may emerge. The bill has the support of 60 members of Congress and groups ranging from Independent Heritage to the Blockchain Association.
The legislation is an important step toward passing this legislation through Congress. However, there is no accompanying bill for this legislation in the Senate. The move is seen as an important development in the debate over the role of central bank digital currencies in the US financial system and the potential impact on privacy and surveillance.
