Author Matt Stoller said that the widespread use of cryptocurrency reflects Americans’ lack of faith in existing financial institutions.
During an interview with Hill.TV’s “Rising,” Stoller called cryptocurrency a “political project,” that is based on “the failure of state and liberal institutions.”
“What crypto people are effectively saying today is ‘We don’t like this national state that we have. We think it is corrupt and collusive..’” Stoller said. “Fundamentally, this is an attack on the state and the idea of America as a nation-state itself.”
Stoller, who serves as the director of research at the American Economic Liberties Project, said the appearance of cryptocurrency in the years following the financial crisis is no coincidence.
“The reason that cryptocurrency is gaining so much steam is because the institutions, the state and the regulated banking system, which are supposed to have some legitimacy are super corrupt,” he said.
Currently, cryptocurrency is not subject to any government regulation. Due to the lack of oversight, users are exposed to risks ranging from counterfeiting to fraud— and are out of luck if the currency loses its value, Stoller said.
“It’s purely premised on belief, and belief works for a while especially when you have a very bubble-like speculative moment like we have right now,” he said. “But when you have a crisis, then it doesn’t work.”
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