Benzinga - The U.S. should follow China's example and ban cryptocurrencies, Berkshire Hathaway Vice Chairman Charlie Munger said in an opinion piece in the Wall Street Journal.
Munger, a well-known critic of cryptocurrencies, believed there was a gap in regulation in the U.S. that allowed cryptocurrencies to flourish.
"A cryptocurrency is not a currency, not a commodity, and not a security. Instead, it’s a gambling contract with a nearly 100% edge for the house, entered into in a country where gambling contracts are traditionally regulated only by states that compete in laxity,” according to Munger.
He also called for the U.S. to follow in the footsteps of China, which recently banned cryptocurrencies, and enact a new federal law to prevent this from happening.
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“The Communist government of China recently banned cryptocurrencies because it wisely concluded that they would provide more harm than benefit. And, in the second precedent, from the early 1700s, England reacted to a horrible depression that followed the blow-up of a promotional plan to get vast profits by using slow-moving sailing ships to trade with very poor people halfway around the world."
The 99-year-old financial markets veteran also pointed to England's ban on public trading in new common stocks in the early 1700s as another example of successful regulation.
"What should the U.S. do after a ban of cryptocurrencies is in place? Well, one more action might make sense: Thank the Chinese Communist leader for his splendid example of uncommon sense."
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