The Reserve Bank of South Africa (which is the South African central bank) Governor, Lesetja Kganyago, criticized the crypto industry lobbying of U.S. policymakers, telling a Davos panel event that bitcoin made no more sense as a reserve asset than beef or apples.
The Governor was speaking at a World Economic Forum (WEF) Davos Panel that included policymakers and industry players, notably Coinbase CEO, Brian Armstrong.
Armstrong expressed support for Trump’s proposal to establish a U.S. government bitcoin reserve. However, Kganyago argued that there was excessive lobbying on the idea, and did not see a reason behind it.
“I would have a significant problem with a lobby that says governments should hold this asset or hold that asset,” Kganyago said.
“There is a history to gold. There was once a gold standard… If we now say ok, Bitcoins. What about platinum? What about coal? Why don’t we hold strategic beef reserves, or mutton reserves, or apple reserves? Why Bitcoin?”
Kganyago also criticized the crypto industry’s efforts to sway financial regulation, warning that such actions could lead to ‘regulatory capture.’
“If regulation is going to be established through the power of money, then we have a problem,” Kganyago said.
Responding to Kganyago’s comments, Armstrong said the impact of pro-crypto groups in the U.S. showed ‘democracy working.’
According to Reuters, the cryptocurrency industry, with major players such as Coinbase and Ripple, invested over $119 million in support of pro-crypto U.S. congressional candidates, aiming to advance legislation favorable to the sector.
LIST | Coinbase Leads Top 20 Crypto Lobbyists in the World
The 30 largest lobbying spenders in the crypto industry constitute 82.1% of the total lobbying expenditure over the past five years. These companies and organizations are ranked based on their total lobbying expenditure… pic.twitter.com/zb89eO4dDM
— BitKE (@BitcoinKE) November 22, 2023
Crypto investors are optimistic that Trump will follow through on his July 2024 announcement to create a national Bitcoin reserve.
POLITICS | Trump to Unveil Plan to Make U.S. Crypto Capital of the Planet
_”I’m laying out my plan to ensure that the United States will be the crypto capital of the planet. Donald Trump#Crypto #IndependenceDay2024 #BTChttps://t.co/5kJdwHaRI5
— Salaxzy (@Salaxzy) August 31, 2024
While bitcoin’s price dipped after Trump omitted any mention of cryptocurrencies in his inauguration speech, Coinbase CEO, Armstrong, re-assured that the plans for a bitcoin reserve remain ‘alive and well.’
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