Exempting cryptocurrencies from taxation could prevent another economic recession, claims former US Congressman Ron Paul.
Writing in a blog post titled ‘Trump is Right, the Fed is Crazy’, Ron Paul has suggested that the current ‘monetary madness’ reinforced by Congress could be ended by allowing citizens and businesses to use alternative currencies such as crypto.
He wrote: “It is likely that the next Fed-creation recession will come sooner rather than later. This could be the major catastrophe that leads to the end of fiat currency. The only way to avoid a crisis is to force Congress to end our monetary madness.
“The first steps are passing the Audit the Fed bill, allowing people to use alternative currencies, and exempting all transactions in precious metals and cryptocurrencies from capital gains taxes and other taxes.”
Paul has historically been skeptical about Bitcoin and crypto, instead supporting the gold standard, but now appears to have changed his tune. Back in December, he claimed that that, while Bitcoin is “exciting”, it lacks a long-term perspective.
Government-created fiat currency is not stable, he continues, and central banks control the economy by controlling interest rates and this, in turn, causes people to misread market conditions when assigning their own resources.
“This can create an illusion of prosperity. Eventually, reality catches up to the Federal Reserve-created fantasies. When that happens, there is a recession or worse, leading the Fed to start the whole boom-and-bust cycle over again.”