Amidst the growing regulatory pressure in the US, many wonder whether it would be possible for the US Federal Reserve to ban Bitcoin. According to BKCM founder and CEO Brian Kelly, this would be very difficult, but there are certainly some ‘choke points’ that could put a spanner in the works for cryptocurrency enthusiasts.
The Fed won’t stop Bitcoin
On Aug. 8, Kelly joined the team of CNBC’s ‘Squawk Box’ to discuss the future of Bitcoin as a hedge asset. Anthony Scaramucci, the former White House communications chief, was another notable guest who appeared on today’s show.
When 'the Mooch' stepped into the conversation and asked whether the Fed can put the brakes on Bitcoin, Kelly replied that it would be hard to achieve.
In terms of killing, that’s very difficult, that’s very much like the Internet”
However, the central bank could block fiat on-ramps. That would make it much harder to buy BTC.
Major exchanges, such as Coinbase and Gemini, campaign for regulations to retain access to the fiat market.
Bitcoin as a macrohedge
Kelly claims that macro funds started trading BTC as an alternative to gold in 2019. Still, the long-term Bitcoin bull admits that he hates the term ‘safe haven’ given the asset’s extreme volatility.
As reported by U.Today, the devaluation of the Chinese yuan conveniently coincided with Bitcoin breaking above $12,000, which is clearly a sign of capital flight.
When asked by Melissa Lee whether there it affected the rest of the crypto-loving Asian market, Kelly replied there was indeed a ripple effect.
South Korea, Vietnam, most of Southeast Asia, that’s where you are seeing most of the capital flight coming from”