Charles Munger proposes banning cryptocurrencies in the United States

The United States should follow China’s example and ban cryptocurrencies. This was stated by Berkshire Hathaway vice chairman Charlie Munger in a column for Wall Street Journal.

The investor, a close associate of Warren Buffett, said they could not be classified as currencies, commodities, or securities.

“This is a gambling contract with almost 100% advantage for the house. It plays out in a country where only individual states compete in this weakness. The United States should enact a new federal law that would put a brake on cryptocurrencies,” — wrote him.

According to the executive, two precedents could spur “rational action” — China\’s ban on cryptocurrencies and the British authorities\’ measures in the eighteenth century. In that era, Parliament forbade the issue of new shares for the next hundred years in response to the depressions of those years.

In December 2021, Munger stated that the Chinese authorities had made the right decision by banning cryptocurrencies and related activities.

Earlier, the vice chairman of Berkshire Hathaway\’s board compared Tesla and Bitcoin to ‘a flea and a louse’ and questioned the ability of digital gold to become a global means of payment.

In 2022, Charles Munger called cryptocurrencies ‘an investment in nothing’ and compared digital assets to ‘a venereal disease’.

As noted, at the end of last year the U.S. Senate allowed the possibility of banning cryptocurrencies. In justification, opponents cited the collapse of FTX.