Microsoft engineers, Harvard lecturers, and other experts jointly petition lawmakers in the United States to pay attention to the negative impact and lobbying issues in the cryptocurrency industry.

With the continuous development of blockchain technology, issues such as fraud, security, and stability, which have often been criticized within the industry, are receiving more attention. Recently, a group of information technology engineers and scholars sent a letter to U.S. legislators, heavily criticizing cryptocurrency investments and blockchain technology. This group even includes a Harvard University lecturer and former Microsoft engineer.

Opposition to Lobbying Activities in the Cryptocurrency Industry

According to a report by the Financial Times, 26 senior information technology engineers and scholars have issued a warning to U.S. lawmakers through a letter, opposing excessive lobbying by cryptocurrency advocates and highlighting current issues in the cryptocurrency industry.

"The claims made by blockchain advocates are incorrect; blockchain is not secure and is not decentralized. A system where forgetting a password means losing a lifetime's savings is not a secure system," said Harvard University lecturer Bruce Schneier.

An analysis of lobbying disclosure data exposed by consumer rights organization Public Citizen revealed that from 2018 to 2021, the number of lobbyists representing the cryptocurrency industry increased from 115 to 320, with lobbying funds growing over four times from $2.2 million to $9 million.

For example, the well-known U.S. cryptocurrency exchange Coinbase spent over $1.5 million on lobbying efforts with 26 lobbyists. Additionally, tech companies like Meta, Visa, and PayPal have also engaged in lobbying for the industry.

"We are opposing lobbying activities, that's the point of this letter. The cryptocurrency industry has its supporters who are only telling politicians what they want to hear," said software developer Stephen Diehl.

Meanwhile, leading cryptocurrency exchanges such as FTX, Binance, and Crypto.com have invested heavily in hiring sports stars and entertainment venues to endorse their products to the public.

Criticism of Blockchain Technology

For many supporters of blockchain technology, protecting financial privacy, providing inflation-resistant assets, and offering banking services without permission have been reasons to be optimistic about the industry.

However, for the technology experts who signed the joint letter, they do not share the same sentiment. They stated in the letter that these unproven digital financial instruments are risky and flawed, requiring regulatory safe harbors to resist them. Additionally, cryptocurrency assets have been vehicles for unsafe and highly volatile investment schemes actively promoted to retail investors who may not understand their nature and risks.

Former Microsoft engineer de Icaza even believes that blockchain technology is a waste of resources, stating that these technologies are actually wasting millions of dollars' worth of equipment just because of a decision not to trust the banking system. If done in a centralized manner, the same computing power can be achieved with a $100 computer.