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The former US representative and presidential candidate Ron Paul s & rsquo; is concerned about the government's ability to monitor the use of cryptocurrencies.
Ron Paul worried Big Brother can spy on Bitcoin
Paul, a retired Republican legislator with strong libertarian tendencies, has long advocated that the United States should return its currency to the gold standard. Although many supporters of the small government are fans of bitcoin, Paul has always expressed skepticism – despite the fact that fans created in 1945 an altcoin today disappeared. In a recent interview, he told TheStreet that this year's fast bitcoin rally has not yet convinced him to swap his bullion for bitcoins.
Paul conceded that he does not understand the technology behind cryptocurrency, but he says that he does not consider it to be money or a store of value because it is not supported by the gold standard. He also expressed concern that the government can easily track the use of cryptocurrency:
"There is already too much scrutiny on how currencies are transferred, [how] reports must be made by exchanges at the IRS," said Paul, now the chief ambassador of Goldco – an investment company that also offers an IRA Cryptocurrency. "If it's really a good deal and that a good process is assured, the government will look at it very carefully … it makes me very nervous."
These fears are not unfounded. As CCN reported, the Internal Revenue Service (IRS) has actively contracted with a blockchain analysis company to help them unmask US citizens who do not pay taxes on their investments and bitcoin transactions. However, the activation of Segregated Witness (SegWit) should facilitate the creation of technologies that will offer bitcoin users increased privacy. In addition, several altcoins – including monero and zcash – have been developed with anonymity as the main priority.
The government should "stay away" from Bitcoin
In any case, Paul added that he was a supporter of competing currencies, and he thinks that people should have the opportunity to choose their own way of trading as long as they do not. there is no fraud involved.
"If the people want it and want to use it, the government should stay away," he concluded.
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