Bitcoin poses no threat to governments, Soros Fund co-founder says

Bitcoin (BTC) is not a threat to governments, according to renowned investor and Soros Fund Management co-founder Jim Rogers.

In an interview with Kitco News on Jan. 31, Rodgers explained that he sees Bitcoin as a trading vehicle and emphasized that it doesn’t pose a threat to governments in terms of replacing established currencies or legal tenders.

Rogers, who in the 1990s designed the Rogers International Commodity Index, a broad index of commodity futures, maintains that cryptocurrency is not a threat to governments. If it was, governments would likely take action.

Simultaneously, he played down the worldwide influence of Bitcoin as a legal tender, referencing El Salvador’s adoption as a limited example. He remarked that he doesn’t foresee cryptocurrencies becoming widely accepted as money, since governments resist such competition.

While acknowledging the increasing acceptance of Bitcoin (BTC), he expressed skepticism about its legitimacy as a currency anywhere, except perhaps in El Salvador, which has a population of only six million. He concluded that this alone is unlikely to have a transformative global impact.

Concerns over CBDC surveillance

Looking forward, Rogers foresaw widespread adoption of digital currencies, particularly central bank digital currencies (CBDCs), by various governments globally.

He remarked, “I fully expect that eventually currencies are going to be on the computer, it’s much more efficient, it’s cheaper, it’s better for many people and governments.”

However, the investor voiced concerns about the increased surveillance potential associated with CBDCs, emphasizing that governments would have detailed access to individuals’ financial activities.

These apprehensions coincide with recent statements from former U.S. President and current GOP candidate Donald Trump, who recently pledged not to support CBDCs should he win the 2024 presidential election, citing concerns about its impact on personal freedoms.

He further affirmed his commitment to protecting the Second Amendment and expressed opposition to the creation of a central bank digital currency, citing concerns about potential financial compromises. He vowed to safeguard innocent lives and restore free speech in this context.

Meanwhile, the CBDC Anti-Surveillance State Act was approved by the US House Financial Services Committee, marking a move against the proposed currency.

The CBDC Anti-Surveillance State Act

On Sept. 20, the US House Financial Services Committee approved the CBDC Anti-Surveillance State Act.

The bill, offered by Majority Whip Tom Emmer, prevents the Federal Reserve from issuing a CBDC directly or indirectly to individuals and prohibits the Secretary of the Treasury from directing the board of governors of the Federal Reserve to issue a CBDC without explicit authorization from Congress.

The legislation also aims to protect innovation and the development of any future digital cash that may emerge. The bill has the support of 60 Members of Congress and groups ranging from the Independent Heritage Action and the Blockchain Association.

The legislation is an important step toward passing this legislation through Congress. However, there is no Senate companion bill for the legislation. The move is seen as a significant development in the ongoing debate over the role of CBDCs in the U.S. financial system and the potential impact on privacy and surveillance.