For years, radical politicians have targeted Bitcoin and other cryptocurrencies, viewing them as threats to the hegemony of the U.S. dollar. Now, they've turned their sights on peer-to-peer payment processors like PayPal and Venmo, seeking to hinder their growth and replace them with government-run alternatives.
In a surprising move, a coalition of far-left politicians, including Senators Elizabeth Warren and Richard Blumenthal and Congresswoman Maxine Waters, recently introduced legislation targeting peer-to-peer payment companies like PayPal, Venmo, Zelle, and CashApp. These companies have revolutionized financial transactions, but the proposed legislation aims to stifle their growth and ultimately replace them with a government-run cryptocurrency.
As a former member of the U.S. Congress' Financial Services Committee, I have witnessed firsthand the Democrats' relentless attacks on these innovative payment processors. They view them as competition to the traditional banking system, which they rely upon to fund their reckless spending.
The War on Peer-to-Peer Payment Processors: Big Government's Attack on Innovation
The Biden administration has also joined the fray, with CFPB Director Rohit Chopra aggressively urging Americans to avoid using these companies due to alleged safety concerns. However, the American public has largely ignored these warnings, continuing to embrace the convenience and flexibility of peer-to-peer payments.
The newly introduced legislation, the Protecting Consumers from Payment Scams Act, would impose strict liability on peer-to-peer payment processors for any scamming that occurs on their platforms. This means they would be forced to reimburse consumers for any fraudulent transactions, regardless of their negligence.
The War on Peer-to-Peer Payment Processors: Big Government's Attack on Innovation
The sponsors of the bill claim it is necessary to protect public safety, but this argument is baseless. Scams represent a tiny fraction of transactions on these platforms. Errors made by consumers are not due to security flaws in the apps; they are similar to mistakes made when sending bank wire transfers.
The true purpose of this legislation is twofold: to make it financially difficult for these companies to operate and to generate negative publicity to shrink their user bases. However, the American people are unlikely to be swayed by these scare tactics, and the Republican-led House Financial Services Committee is expected to kill the bill before it gains traction.
The War on Peer-to-Peer Payment Processors: Big Government's Attack on Innovation
The war on peer-to-peer payment processors is part of a larger effort by big government to stifle innovation and maintain control over the financial system. The American people must resist these attempts and protect the freedom and flexibility that these companies provide.
