Ex-Bitcoin Skeptic Ron Paul: Crypto Could Prevent Recession
Retired US Congressman Ron Paul, a one-time bitcoin skeptic, called for a tax exemption on all cryptocurrencies, saying the move could prevent an economic recession.
Ron Paul, the father of current United States Senator Rand Paul, made the suggestion in a blog post entitled “Trump Is Right, the Fed Is Crazy,” where he blasted the Federal Reserve for manipulating interest rates.
“It is likely that the next Fed-created recession will come sooner rather than later,” Paul wrote. “This could be the major catastrophe that leads to the end of fiat currency.”
Paul said the only way to avoid such a crisis is to allow people to use alternative currencies and to exempt “all transactions in precious metals and cryptocurrencies from capital gains taxes and other taxes.”
Fed Manipulation Causes ‘Illusion Of Prosperity’
Paul said central banks constantly increase and decrease the money supply to control the economy by controlling interest rates.
He said the Federal Reserve‘s cyclical manipulation of interest rates actually fuels recessions by creating an artificial economic boom.