Noted Federal Reserve critic and crypto proponent Ron Paul has, not for the first time, criticized the central bank, saying government-created currency could lead to what he calls a “Fed-created recession.”
The libertarian-leaning economist, who served as a U.S. representative for more than a decade said in a blog post titled “Trump Is Right, the Fed Is Crazy” that the only way to avoid a pending crisis is to abolish the “monetary madness,” which includes the taxing of bitcoin BTCUSD, +1.38% and other cryptocurrencies.
‘The first steps are passing the Audit the Fed bill, allowing people to use alternative currencies, and exempting all transactions in precious metals and cryptocurrencies from capital gains taxes and other taxes’
Paul, who ran for president in 1998 and whose son Rand is a senator, has long-argued precious metals such as gold and silver are a better reserve currency, saying the manipulation of fiat money through tools such as quantitative easing has the Federal Reserve System doomed for failure and a “major catastrophe” will lead to a Fed-created recession — and the end of fiat currency.
(The Fed is now pursuing a policy of quantitative tightening that has taken its balance sheet down to $4.17 trillion from a $4.5 trillion peak.)
Now, with cryptocurrencies becoming more mainstream, Paul has added them to the store of value basket.
Despite some crypto evangelists, such as Tyler and Cameron Winklevoss, who believe bitcoin will replace gold, Paul has said in the past that the two are not mutually exclusive.
“It’s conceivable that cryptocurrencies, using blockchain technology, and a gold standard could exist together, rather than posing an either-or choice. Different currencies may be used for certain transactions for efficiency reasons,” Paul wrote in a June 22 post.
Paul has become such a favorite among the crypto community that in 2013 someone created RonPaulCoin as a gesture for “standing for financial freedom, economic transparency and for promoting the legalization of competing currencies.”
You can pick up a single RonPaulCoin for about 5 cents.