Charlene Fadirepo, a former audit manager at the Federal Reserve Board of Governors, called Bitcoin a tool for social justice when it comes to Black Americans.
Bitcoin as a tool for good?
Crypto investors these days are so used to negative talk about Bitcoin and other cryptocurrencies from financial regulators that praise must leave them wondering whether that’s too good to be true.
But Charlene Fadirepo, a former Fed official, had nothing but good things to say about the world’s oldest cryptocurrency. Interestingly, she regards Bitcoin as a tool for social justice, stating that it allows minority communities to build generational wealth. Not only Black Americans would benefit from Bitcoin, but also Latinos, LGBT communities, and Indigenous communities. All groups that have been left out of the discriminatory banking system would benefit from the use of Bitcoin.
Fadirepo was also surprisingly upbeat about the long-term prospects of Bitcoin. She said that looking at it on a ten-year basis, Bitcoin had far outperformed gold and the S&P, implicitly alluding that these kinds of investment opportunities were open to anyone regardless of their race or social status. Fadirepo also lauded efforts to build a more coherent regulatory framework for cryptocurrencies, saying that the FDIC and the Fed would create regulatory clarity that builds trust, security, and encourages more people and institutions to invest in cryptocurrencies.
US politics split on the use of crypto
Even though Fadirepo does not work at the Fed anymore, her statement still comes as a surprise considering the current administration has a less bullish take on cryptocurrencies.
Yes, the US does not plan to ban Bitcoin and yes, regulators are working on allowing banks to hold crypto. But the Biden administration also announced an executive order on cryptocurrencies come February and declared them a matter of national security. That does most likely not spell good news for crypto investors, as several agencies are tasked with preparing reports on crypto and its expected economic and political impact on the country.
While some academics have lauded the positive influence Bitcoin has had on younger generations, particularly Democrats have not shared the kind of positive take displayed by Ms. Fadirepo in her interview. Curiously, liberal politicians in the US have failed to “spin” Bitcoin as a tool for financial equality, allowing conservative politicians to mostly brand Bitcoin and other crypto as a way to obtain financial freedom without pesky regulation.
However, if Bitcoin is to prosper, cryptocurrencies will need a unified and coherent position by US financial authorities more than anything else. While crypto can shake off bans by authoritarian countries – after all Bitcoin is supposed to be decentralised and free from governmental oversight – overbearing regulation by US financial authorities could still deal a massive blow to the widespread adoption and perception of crypto. If Bitcoin proponents want to fight the good fight, they are well-advised to team up with open-minded regulators like Ms. Fadirepo. Especially in a bear market, they will need every ally they can get.
