As Financial Time reports, computer experts have signed a letter urging the US Congress to protest the impact of the crypto space and take action on the industry.
While the letter denounces cryptocurrency as an “unhealthy and highly speculative investment instrument” and further claims that blockchain technology serves no real purpose, we urge you to resist pressure from financiers, lobbyists and boosters of the digital asset industry. These are risky, flawed and unproven digital financial instruments.”
Microsoft engineer Miguel de Icaza, one of the signatories to the letter, explained that the computational power required for blockchain technology can be done in a centralized manner using a $100 computer.
He elaborates that the computational power equivalent to what you can do in a centralized way with a $100 computer, just because we don’t trust banking systems that use millions of dollars worth of equipment, is a waste. .
Furthermore, the other signer of the letter, Harvard lecturer Bruce Schneier, says that the claims made by blockchain advocates are untrue, and that the system is not secure or even decentralized.
He adds: “Any system where you forget your password and you lose your life savings is not a secure system.”
The group’s letter has also been forwarded to Senate majority and minority leaders, Senators Patrick Tomei and Senator Ron Wyden, and other senators who have spoken out in favor of crypto.
The CEO of the SIMBA chain said that blockchain technology has further helped introduce new concepts to finance and other industries. He noted further advantages and said that it has greater transparency and immutability of data. Which ensures accuracy and streamlines processes, crypto stakeholders further do not accept and do not agree to the view shared by technical experts.
Another expert, Pete Boyle, cited the approach of the crypto industry as a “real opportunity to bring financial services to those excluded by traditional financial institutions”.
At the same time, global financial regulators and important figures such as Senator Elizabeth Warren warned about the risks associated with the crypto industry.