Former U.S. Presidential Candidate Says He's 'All for Cryptocurrencies'

Omar Faridi

Ron Paul, a prominent author, physician, and former U.S. presidential candidate, recently revealed that he supports decentralized cryptocurrencies and their underlying blockchain technology.

Ron Paul: Governments Should Support Cryptocurrencies

Paul, a well-known critic of the American government’s fiscal policies, told CNBC during a “Squawk Alley” interview (on July 15, 2019) that cryptoassets create more competition for fiat currencies and the traditional financial system.

Paul also noted that governments should support the development of blockchain-based digital assets by creating a regulatory framework that prevents fraudulent activities. He remarked: 

I’m for the least amount of regulation. I don’t know what’s [going to] happen to cryptocurrencies. I think it’s a great idea. And I only have one rule: no fraud.

“Legalizing Freedom of Choice” and Preventing Fraud

According to Paul, governments have an important role and responsibility, which involves detecting and investigating fraudulent crypto-related schemes. He explained:

What I want to do is legalize the freedom of choice, absent blatant fraud.

Paul, who’s been a vocal critic of the U.S. Federal Reserve (questioning why it exists), compared cryptoassets to the gold bullion. He argued that both assets compete with major fiat currencies, and that “governments aren’t very tolerant of competition.”

“I’m Not Too High on Our Own Currency”

Paul further noted:

[Governments are] not even tolerant with using the Constitution to compete with the fiat dollar. Because gold and silver, you can’t use it.

In January 2014, Paul had said that he had been an advocate of “competing currencies” for a long time. He stated (at that time): 

I’m not too high on our own currency (USD), and I think alternative is a good method.

Paul has also predicted that the US dollar would eventually collapse or no longer be the world’s most dominant currency. He believes that fiat currencies cannot last forever as they will “all self-destruct” eventually.

He remarked:

Right now, the world is engulfed with fiat currency; they’re all paper currencies. That’s one of the other reasons the dollar holds up: What are you competing against, the euro and the yen? The competition out there isn’t any good.

Beginning with Bitcoin (BTC), blockchain-based cryptocurrencies have allowed users to exchange value in decentralized manner - without requiring third-parties to finalize the transaction.

Peer-to-peer (P2P) monetary transactions may continue to challenge the traditional financial system - as they present a more efficient and potentially more cost-effective alternative to conducting business