Palo Alto City Council Member Pushes for Separation of Money and State

Palo Alto Metropolis Council member Greg Tanaka (D-CA) sat down with Be[In]Crypto at ETHDenver forward of his Congressional run, explaining why there must be a separation of cash and state. 

Tanaka, who was re-elected to the Palo Alto Metropolis Council in November 2020, introduced his intention to run for U.S. Congress for the 18th District, difficult long-term incumbent Anna Eshoo and the seemingly anti-crypto perspective surrounding cryptocurrency’s infrastructure and utilization.  

Implementing separation of “cash and state”

In pushing his proposal, Tanaka sat down with Be[In]Crypto at ETHDenver 2022, and broke down how the separation of cash and state would tentatively appear to be.

“I feel what we are going to see, starting with how our nation was born, each city had their very own type of forex, which was insane as a result of they didn’t have smartphones or simple accessibility to have the ability to switch and convert the forex. Now, we now have all these bridges to hyperlink currencies collectively, with out having to do the maths. The maths is completed by software program and expertise. I feel we should always permit crypto as authorized tender, particularly Bitcoin.”

Within the short-term, Tanaka believes Bitcoin will “most likely be a parallel forex to the U.S. greenback, which is an efficient factor. Whereas Ethereum additionally has that potential with its sensible contracts, it’s additionally an fascinating dialog.”

Taking a look at El Salvador’s embrace of crypto, Tanaka additionally believes that packages like CityCoin in areas akin to MiamiCoin and NewYork are the long run.

“We solely have a lot income, and the {dollars} we now have proper now are being whittled away due to inflation,” he mentioned. In actuality, Bitcoin is extremely inexperienced and energy-efficient should you’re having the precise conversations. 

“We have to totally embrace this expertise, relatively than pushing towards it.”

Ought to there be a capital beneficial properties vacation for crypto?

Because the collapse of The Silk Highway in 2013, cryptocurrency has definitely taken on a really darkish, destructive affiliation with U.S. regulators and lawmakers, who’re resistant to completely embrace the digital asset’s utility within the U.S. financial system. 

The current infrastructure invoice, which is essential for a extra complete understanding of the digital asset, didn’t assist both, in line with Tanaka. “What this infrastructure invoice does is put a knife above everybody’s head, the place people may face a state or federal felony, topic to 5 years in jail and as much as a $25,000 high quality,” he advised Be[In]Crypto.

He in contrast the innovation and general environment at ETHDenver to the conversations that first sparked with the beginning of the web in 1995. “Once I look again to the web in 1995, and what the federal government did – it was nice. They gave a tax vacation on e-commerce, permitting the trade to flourish. Think about if we didn’t have e-commerce throughout the COVID-19 pandemic; we might have been completely screwed.”

As a part of Tanaka’s Congressional marketing campaign, he believes we ought to be doing one thing comparable with cryptocurrency. “I feel we also needs to have a capital beneficial properties vacation, the place you promote your Bitcoin to USDC, otherwise you go from USDC to Tether or Avalanche, or no matter it occurs to be. My choice could be having no capital beneficial properties in any respect for the subsequent decade, in order to permit this trade to flourish.”

Software program has lastly eaten cash

One of many greatest drivers behind Tanaka’s marketing campaign and time in Palo Alto’s Metropolis Council, revolves round pushing for the separation of cash and state. 

“Much like how there’s a separation of faith and state, I firmly consider there ought to be an identical separation because it entails cash and state,” he mentioned, including that the faith and state separation was “revolutionary on the time for the U.S. authorities and for the U.S. Structure.”

Previously, cash basically needed to be one thing that the federal government did, to make sure safety of the cash provide, starting from involving the Secret Service, anti-money laundering and counterfeiting groups, police, court docket system, and using financial institution vaults. 

As we speak, in line with Tanaka, software program has lastly eaten cash, enjoying off considered one of his firm’s buyers, Marc Andreessen’s sayings of how software program has eaten the world. 

“Paradoxically, software program has lastly eaten cash, as a result of earlier than crypto, you needed to have the Secret Service, financial institution vaults, and specialised safety fibers operating by means of the greenback payments, and all these methods in place to safe the cash provide. If you happen to have a look at how a lot this prices when it comes to energy and cash, it’s astronomical.”

But, with cryptocurrency, these mechanisms and methods are now not wanted because of the asset’s extraordinarily safe and quick capability to be transferred and exchanged. 

During the last yr, the U.S. authorities has solely printed 40% of U.S. {dollars} at the moment in circulation. In its efforts to pay for about $29 trillion in U.S. debt, The Federal Reserve has continued to print cash, whereas recognizing that just about 40% of American adults wouldn’t even have the ability to cowl a $400 emergency with money, financial savings, or a bank card.

Tanaka says that with the U.S. serving because the dominant financial system since World Battle II, its efforts of trying to debase forex solely results in the “solar setting on our nation, which isn’t good.”

Congress is out to lunch

It’s no secret that Congress has been extraordinarily resistant to deal with or implement any new adjustments related to Bitcoin and different cryptocurrencies. 

However is its worry hurting the push ahead for the U.S. in sustaining its standing as a dominant financial system?

“I feel Congress is out to lunch,” Tanaka mentioned.

“My present Congressional opponent who shall be 80 this yr, isn’t essentially the most tech savvy particular person on the planet, I hung out attempting to clarify what crypto is to different members of Congress about its promise, however they don’t get it. With 10% to twenty% of the U.S. financial system going in the direction of our monetary system, and also you have a look at what Congress is doing – they’re simply shifting numbers on a spreadsheet; they’re not including a variety of inventive worth. But, they’re taking a lot worth from the system, asserting this tax on the U.S. financial system.”

With conventional finance already closely regulated, single transactions by means of Wells Fargo and Visa impose an approximate 3% price on each transaction. Chatting with this, Tanaka pointed to how crypto is a far more environment friendly system that doesn’t require a standing military to defend.

“We ought to be embracing this expertise, as a result of in 100 years or so, we are going to look again to this second and notice how cryptocurrency is without doubt one of the biggest innovations.” 

As we speak’s technology must “become involved”

With at the moment’s technology of millennials and Gen-Z attending conferences like ETHDenver, the continuing subject revolves across the unequal unfold of digital natives because it compares to digital immigrants. 

“In Palo Alto, the seniors dominate the vote, outvoting everybody 3 to 1,” Tanaka defined. “If you happen to have a look at Congress, whereas the incumbent in my district is 80 years previous, the typical age is nearly 70.”

Chatting with youthful of us at ETHDenver, Tanaka says it’s essential to get up and become involved. 

“What they need to be doing is getting concerned. I feel there’s a variety of promise with DAOs, particularly with Foyer 3. It’s essential to become involved within the campaigns like mine, who’re operating pro-crypto campaigns for Congress. To win, we have to knock out among the anti-crypto incumbents, and put the worry of God into this pushback.”

Quite than going underground or leaving the nation he encourages ETHDenver attendees to become involved and help these campaigns wherever they might be.

“The largest factor you are able to do is vote and donate to those campaigns, as a result of this yr is a pivotal yr. Except folks become involved now, the Treasury Division will almost definitely come out with extremely onerous guidelines. We want time period limits for incumbents. We want recent views. We want a legislator for the digital age.”

You’ll be able to study extra about Greg’s pro-crypto Congressional marketing campaign by visiting his web site.

Be[In]Crypto shall be on-site offering you real-time protection from ETHDenver, highlighting the improvements throughout Web3 and cybersecurity.

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