Palo Alto Metropolis Council Member Pushes for Separation of Cash and State


Palo Alto Metropolis Council member Greg Tanaka (D-CA) sat down with Be[In]Crypto at ETHDenver forward of his Congressional run, explaining why there must be a separation of cash and state. 

Tanaka, who was re-elected to the Palo Alto Metropolis Council in November 2020, introduced his intention to run for U.S. Congress for the 18th District, difficult long-term incumbent Anna Eshoo and the seemingly anti-crypto perspective surrounding cryptocurrency’s infrastructure and utilization.  

Implementing separation of “cash and state”

In pushing his proposal, Tanaka sat down with Be[In]Crypto at ETHDenver 2022, and broke down how the separation of cash and state would tentatively seem like.

“I feel what we’ll see, starting with how our nation was born, each city had their very own type of foreign money, which was insane as a result of they didn’t have smartphones or straightforward accessibility to have the ability to switch and convert the foreign money. Now, we have now all these bridges to hyperlink currencies collectively, with out having to do the maths. The maths is finished by software program and expertise. I feel we must always permit crypto as authorized tender, particularly Bitcoin.”

Within the short-term, Tanaka believes Bitcoin will “in all probability be a parallel foreign money to the U.S. greenback, which is an effective factor. Whereas Ethereum additionally has that potential with its sensible contracts, it’s additionally an fascinating dialog.”

El Salvador’s embrace of crypto, Tanaka additionally believes that packages like CityCoin in areas corresponding to MiamiCoin and NewYork are the longer term.

“We solely have a lot income, and the {dollars} we have now proper now are being whittled away due to inflation,” he stated. In actuality, Bitcoin is extremely inexperienced and energy-efficient in the event you’re having the best conversations. 

“We have to totally embrace this expertise, moderately than pushing in opposition to it.”

Ought to there be a capital positive factors vacation for crypto?

For the reason that collapse of The Silk Street in 2013, cryptocurrency has actually taken on a really darkish, damaging affiliation with U.S. regulators and lawmakers, who’re resistant to completely embrace the digital asset’s utility within the U.S. financial system. 

The latest infrastructure invoice, which is essential for a extra complete understanding of the digital asset, didn’t assist both, in accordance with Tanaka. “What this infrastructure invoice does is put a knife above everybody’s head, the place people may face a state or federal felony, topic to 5 years in jail and as much as a $25,000 fantastic,” he instructed Be[In]Crypto.

He in contrast the innovation and general ambiance at ETHDenver to the conversations that first sparked with the start of the web in 1995. “Once I look again to the web in 1995, and what the federal government did – it was nice. They gave a tax vacation on e-commerce, permitting the trade to flourish. Think about if we didn’t have e-commerce through the COVID-19 pandemic; we’d have been completely screwed.”

As a part of Tanaka’s Congressional marketing campaign, he believes we needs to be doing one thing related with cryptocurrency. “I feel we also needs to have a capital positive factors vacation, the place you promote your Bitcoin to USDC, otherwise you go from USDC to Tether or Avalanche, or no matter it occurs to be. My desire can be having no capital positive factors in any respect for the following decade, in order to permit this trade to flourish.”

Software program has lastly eaten cash

One of many greatest drivers behind Tanaka’s marketing campaign and time in Palo Alto’s Metropolis Council, revolves round pushing for the separation of cash and state. 

“Just like how there’s a separation of faith and state, I firmly consider there needs to be an analogous separation because it includes cash and state,” he stated, including that the preliminary separation was “revolutionary on the time for the U.S. authorities and for the U.S. Structure.”

Up to now, cash essentially needed to be one thing that the federal government did, to make sure safety of the cash provide, starting from involving the Secret Service, anti-money laundering and counterfeiting groups, and using financial institution vaults. 

Right this moment, in accordance with Tanaka, software program has lastly eaten cash, taking part in off one among his firm’s traders, Marc Andreessen’s sayings of how software program has eaten the world. 

“Sarcastically, software program has lastly eaten cash, as a result of earlier than cash, you needed to have the Secret Service, financial institution vaults, and specialised fibers operating by the greenback invoice, and all these techniques in place to safe the cash provide. For those who take a look at how a lot this prices, it’s astronomical.”

But, with cryptocurrency, these mechanisms and techniques are now not wanted because of the asset’s extraordinarily quick potential to be transferred and exchanged. 

Over the past 12 months, the U.S. authorities has solely printed 40% of U.S. {dollars} at present in circulation. In its efforts to pay for roughly $29 trillion in U.S. debt, The Federal Reserve has continued to print cash, whereas recognizing that nearly 40% of American adults wouldn’t even have the ability to cowl a $400 emergency with money, financial savings, or a bank card.

Tanaka says that with the U.S. serving because the dominant financial system since World Struggle II, its efforts of making an attempt to debase foreign money solely results in the “solar setting on our nation, which isn’t good.”

Congress is out to lunch

It’s no secret that Congress has been extraordinarily resistant to handle or implement any new adjustments related to Bitcoin and different cryptocurrencies. 

However is its concern hurting the push ahead for the U.S. in sustaining its standing as a dominant financial system?

“I feel Congress is out to lunch,” Tanaka stated.

“My present Congressional opponent isn’t essentially the most tech savvy particular person on the planet, and I spend time attempting to elucidate what crypto is, as I’ve performed the identical talking with different members of Congress about its promise. With 10% to twenty% of the U.S. financial system going in the direction of our monetary system, and also you take a look at what Congress is doing – they’re simply transferring numbers on a spreadsheet; they’re not including a whole lot of artistic worth. But, they’re taking a lot within the system, asserting this tax on the U.S. financial system.”

With conventional finance already closely regulated, single transactions by Wells Fargo and Visa impose an approximate 3% price on each transaction. Chatting with this, Tanaka pointed to how crypto is a far more environment friendly system that doesn’t require a standing military to defend.

“We needs to be embracing this expertise, as a result of in 100 years or so, we’ll look again to this second and understand how cryptocurrency is without doubt one of the biggest innovations.” 

Right this moment’s era must “become involved”

With at the moment’s era of millennials and Gen-Z attending conferences like ETHDenver, the continuing problem revolves across the unequal unfold of digital natives because it compares to digital immigrants. 

“In Palo Alto, the seniors dominate the vote, outvoting everybody 3 to 1,” Tanaka defined. “For those who take a look at Congress, whereas the particular person in my district is 80 years outdated, the common age is nearly 70.”

Chatting with youthful of us at ETHDenver, Tanaka says it’s essential to get up and become involved. 

“What they need to be doing is getting concerned. I feel there’s a whole lot of promise with DAOs, particularly with Foyer 3. It’s necessary to become involved for the variety of us who’re operating pro-crypto campaigns for Congress. To win, we have to knock out a few of the anti-crypto incumbents, and put the concern of God into this pushback.”

Somewhat than going underground or pushing in opposition to this, he encourages ETHDenver attendees to become involved and help these campaigns of their native areas.

“The largest factor you are able to do is vote and donate to those campaigns, as a result of this 12 months is a pivotal 12 months. Until folks become involved now, the Treasury Division will more than likely come out with extremely onerous guidelines. We’d like time period limits for incumbents and we’d like contemporary views.”

Be[In]Crypto will probably be on-site offering you real-time protection from ETHDenver, highlighting the improvements throughout Web3 and cybersecurity.

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