{"id":211666,"date":"2021-03-26T17:03:56","date_gmt":"2021-03-26T14:03:56","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/former-occ-official-says-crypto-has-backing-but-dollar-may-not\/"},"modified":"2021-03-26T17:03:56","modified_gmt":"2021-03-26T14:03:56","slug":"former-occ-official-says-crypto-has-backing-but-dollar-may-not","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/former-occ-official-says-crypto-has-backing-but-dollar-may-not\/","title":{"rendered":"# Former OCC official says crypto has backing but dollar \u2018may not\u2019"},"content":{"rendered":"

“# Former OCC official says crypto has backing but dollar \u2018may not\u2019 <\/strong>”
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Brian Brooks, former acting comptroller of the currency of the United States Office of the Comptroller of the Currency, has claimed that cryptocurrencies like Bitcoin (BTC) have some backing, while the U.S. dollar may not have any.<\/p>\n

Brooks gave his remarks in a CNBC Squawk Box interview<\/a> with Joseph Kernen to unpack recent Bitcoin-related remarks by the U.S. Federal Reserve chair Jerome Powell. Earlier this week, Powell argued that cryptos like Bitcoin are \u201cessentially a substitute for gold\u201d but at the same time they are \u201cnot backed by anything.\u201d<\/p>\n

CNBC host Kernen pointed out that gold has historically been seen as a store of value, expressing confusion over Powell\u2019s comments, stating. \u201cHe just said it\u2019s like gold but not a store of value. Does he not think that gold is a store of value?\u201d<\/p>\n

In response, Brooks said that there are many reasons why people have flocked to Bitcoin over the past year, including the Fed dramatically increasing the dollar supply. \u201cSo when you do that, it means that the dollar is at least a 40% less good store of value than it was a year ago. And that is one of the reasons people opt to Bitcoin,\u201d he stated.<\/p>\n

In reference to the United States abandoning the gold standard under President Richard Nixon in 1971, Brooks said:<\/p>\n

\u201cThe point I really wanna make is the dollar may not actually be backed by anything […] But cryptocurrencies actually are backed by something. They\u2019re backed by underlying networks, and what you\u2019re buying when you buy a crypto token \u2014 whatever it is Bitcoin or anything else \u2014 you\u2019re buying a piece of a financial network built to transact all kinds of stuff.\u201d\u00a0<\/p>\n

Brooks stated that the increasing number of network app<\/a>lications over the past few years is the main reason that the crypto industry is worth almost a $2 trillion today. \u201cI believe in the wisdom of crowds. I think that crowds are telling you that these networks are where finances are going in the future. I wanna be part of that,\u201d he concluded.<\/p>\n

U.S. authorities have been actively investigating the concept of a digital dollar. On Monday, Powell said<\/a> that the Fed would not proceed with the digital dollar without support from Congress.<\/p>\n