A group of tech professionals has submitted a letter urging the US Congress to oppose the impact of the crypto sector and impose a restriction on the industry.
Per the Financial Times, the letter described cryptocurrency as an “unsound and highly speculative investment” and stated that blockchain technology serves no actual function.
The letter includes the following passage:
“We urge you to resist pressure from digital asset industry financiers, lobbyists, and boosters to create a regulatory safe haven for these risky, flawed, and unproven digital financial instruments.”
Microsoft engineer Miguel de Icaza, one of the letter’s signatories, stated that the processing power necessary for blockchain technology could be done in a centralized manner with a $100 computer. He stated:
“The computational power is equivalent to what you could do in a centralized way with a $100 computer. We’re essentially wasting millions of dollars’ worth of equipment because we’ve decided that we don’t trust the banking system.”
Havard professor Bruce Schneier, another contributor to the letter, said that blockchain enthusiasts’ assertions are false.
He claims that the system is not safe or decentralized, before adding: “Any system where you forget your password and you lose your life savings is not a safe system.”
The letter was sent to Senate Majority and Minority Leaders, as well as Senator Patrick Toomey and Senator Ron Wyden, and other senators who have come out in support of crypto.
Meanwhile, this is not the first instance the crypto sector has been labeled negatively by the general public.
Notable figures such as Senator Elizabeth Warren and global financial regulators have repeatedly cautioned about the hazards associated with the cryptocurrency industry.
Crypto stakeholders have voiced their concerns with the tech experts’ viewpoints.
Blockchain technology, according to Bryan Ritchie, CEO of SIMBA Chain, has aided in the introduction of new concepts into economics and other industries. While the technology is “still quite difficult for most,” he continues, it provides advantages such as “transparency and immutability of data,” which may assist to assure the correctness and simplify procedures.