Charlie Munger, vice chairman of Berkshire Hathaway, has once again made his stance on cryptocurrencies clearer, this time in an article titled “Why the U.S. Should Ban Cryptocurrencies.” In the article, Munger emphasized the need for the U.S. government to ban cryptocurrencies, echoing China’s decision to do so.
Munger believes that cryptocurrency is not a currency, commodity or security, but a “gambling contract with a nearly 100% edge, in a country that has traditionally been regulated only by states with loose competition.” Berkshire Deputy The chairman called for the implementation of new federal laws to prevent the proliferation of cryptocurrencies in the United States.
Munger cited two precedents that could provide guidance on how to effectively ban cryptocurrencies. The first was China’s own ban, which the Chinese government “wisely concluded … did more harm than good”. The second was Britain’s ban on public trading of new common shares in the 1700s after a failed speculative trading scheme, which Munger believes helped give Britain a strong lead in the Enlightenment and Industrial Revolution.
Finally, Munger believes that a ban on cryptocurrencies in the United States is necessary to prevent harm and protect investors. He also suggested that the U.S. should “give thanks to the outstanding example of the extraordinary judgment of the Chinese Communist Party leadership” when imposing a similar ban in China. The Berkshire Hathaway vice chairman’s views on cryptocurrencies are sure to continue to spark debate in the financial world.