Brian Brooks, Acting Currency Monitor at the Office of the Comptroller of the United States, stated that cryptocurrencies such as Bitcoin (BTC) have some support, while the US dollar may not.
Brooks made the remarks in an interview with CNBC Squawk Box with Joseph Kernen to extract recent notes regarding Bitcoin from US Fed leader Jerome Powell. Powell said earlier this week that cryptocurrencies such as Bitcoin “are already replacing gold”, but that at the same time, they are “not backed by anything.”
CNBC host Kern noted that gold was historically considered a store of value and expressed confusion about Powell’s comments and concerns. “He just said it is like gold, but it is not a store of value. Does he not think gold is a store of value?”
In response, Brooks said there were many reasons why people have flocked to bitcoin in the past year, including the Federal Reserve, which has sharply increased the supply of dollars. When you do, it means that the dollar is worth at least 40% less than it was a year ago. He said that is one of the reasons why people choose Bitcoin.
Referring to the U.S. abandonment of the gold standard under President Richard Nixon in 1971, Brooks said:
“I really want to emphasize that dollars don’t really support anything […] but cryptocurrencies are really backed by something. They are backed by the underlying networks and what you buy when you buy a cryptocurrency – whether it’s bitcoin or whatever – you buy part of the financial network. Created to do whatever you want. ”
Brooks stated that the rise in network applications in recent years is the main reason why the crypto industry is nearly $ 2 trillion worth today. “I believe in people’s wisdom. I think the audience will tell you that these networks are where the economy will go in the future.” He concluded, “I want to be a part of this.”
The US authorities are actively exploring the concept of the digital dollar. Powell said on Monday that the Fed will not continue to use the digital dollar without support from Congress.