Billionaire Charlie Munger Says America Should Ban Crypto, Here’s Why

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Charlie Munger. Source: A video screenshot, Youtube/Yahoo Finance

The United States should follow in China’s footsteps and implement “a cryptocurrency ban”, according to billionaire investor Charlie Munger.

In an op-ed for The Wall Street Journal on Wednesday, Munger said crypto “is not a currency” and likened the crypto market to a casino “with an almost 100% advantage for the House”.

“A cryptocurrency is not a currency, nor a commodity, nor a security,” Munger wrote, instead calling crypto a “gambling contract” where the odds strongly favor the house. And to make matters worse, these bets are made in “a country where gambling contracts have traditionally been regulated only by states that compete with laxity,” Munger wrote.

He went on to suggest that the United States should take action at the federal level to get rid of crypto:

“Obviously, the United States should now enact new federal law that prevents this from happening.”

The well-known investor, who was Warren Buffet’s right-hand man at investment conglomerate Berkshire Hathaway for decades, added that the only reason the crypto craze has been allowed to continue in the US is United is because of “a gap in the regulations”. ”

Follow the example of China

Mr. Munger, who celebrated his 99th birthday earlier this year, did not specify in his post what exactly he meant by a “cryptocurrency ban,” and whether that included a ban on crypto trading, crypto transactions or even just holding crypto.

What he did, however, was praise the efforts of the Chinese communist government to rid their country of all things crypto, while suggesting that the United States should do the same.

“What should the US do after a cryptocurrency ban is in place? Well, one more action might make sense: thank the Chinese communist leader for his magnificent example of out-of-this-world common sense” , Mr. Munger wrote.

This is not the first time that Munger has criticized crypto

Mr. Munger’s latest opinion piece is far from the first where the billionaire has voiced his criticism of crypto and called for increased regulation.

Following the collapse of crypto exchange FTX in November last year, Munger specifically called Bitcoin (BTC) a “very, very bad thing.” He added that the United States, in his view, “didn’t need a currency that was good for kidnappers and so on.”

“There are people who think they have to be on every case that’s hot. And they don’t care if it’s child prostitution or bitcoin. I think that’s completely crazy. The reputation is very useful in financial life,” the seasoned investor said at the time.

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