Admittedly cryptocurrency geeks live in a world of their own and are not fully acquainted with how the domain of central banks and governments actually works. And they’re proud of it!
Cryptocurrency supporters in many cases are anarcho-libertarians who thrive on the fact that cryptocurrencies are decentralized, so-called “trustless” systems that do not rely upon banks, exchanges and traditional payments systems. That’s fine. But, it would be naïve to the point of recklessness to ignore the forces now at work in the world to rein in and suppress the existence of cryptocurrencies.
This article is a good example of that naiveté. The author mocks the recent central bank and finance ministers meeting of the G20 in Buenos Aires. He explores early-stage G20 efforts to study and ultimately regulate certain tax and anti-money laundering aspects of cryptocurrencies in general. He makes fun of the G20 bureaucracy, jargon and generally slow tempo.
It’s true that the G20 moves slowly. That’s because there are divergent interests and political models included in the G20 membership. Any organization that includes Russia, China and the United States is bound to have some differences. The G20 addresses the most critical issues in the financial system including systemic risk, sovereign bankruptcy and tax avoidance by global corporations.
To suggest that nothing of significance is accomplished by the G20 is incorrect. The entire structure of account freezes and “bail-in” procedures that put your money at risk in the next financial crisis, which I call “ice-nine” (a reference to frozen accounts in a doomsday scenario), was worked out by the G20 between 2010 and 2014. That project took four years, but ice-nine is now in force putting your money at risk.
Let the crypto gurus laugh at G20 today. It won’t be long before G20 has the last laugh and cryptocurrency traders are on the run from the tax police and Interpol.