My Concern About Crypto Currency

[Lesley Resnick]

I have a lot of concerns about cryptos in general.  

What if the Fed creates a block chain digi-dollar.  Trades at the value of $1 us dollar.  It would virtually eliminate the need for all other currencies globally.  The third world would trade in US currency natively via a phone connection.  Our banking system would become global, micro loans to people in Senigal would be profitable.  It would be the next step beyond a reserve currency.  Further, the government could easily make cryptos illegal, due to money laundering laws.  I can not print up Lesley Dollars and circulate them, why is it different for any of the cryptos.    

The cryptos eliminate the governments ability to help the economy in an emergency (Corona Virus).  The Fed can create money and perform quantitative easing while managing interest rates.  I do not want an unmanaged money supply.  It is the ultimate in FIAT curency, there is no one that is saying, "I will backstop this currency".   We would have unimaginable booms and depressions that would be so extreme we would be exchanging wampum as money after the currency crash.

Bottom line is that Cryptos represent a challenge to the US losing it reserve currency status.  Further, other first world countries would lose their ability to manage their own currency.  This is an example of technology outpacing laws.  

I trust Mark Zuckerberg even less with control of our currency, than I do the Fed.  Facebook tried to create a currency based on their platform.  It was shut down quickly.  

If the best argument for Cryptos is they will go up in value and I can day trade them, it is doomed to fail.  For Bitclion to become mainstream, it needs to be exchanged in and out of the banking system and that will never happen.  Banks are required to keep reserves, how do you value reserves in multiple currenies, especially if one is volatile?