‘Cantillon Effect’ Can Be Countered by Having ‘Bitcoin Only’ Companies Present at the Negotiating Table — Swan Bitcoin MD

The crypto industry can stop the so-called Cantillon Effect from occurring by establishing large enough “Bitcoin only” companies that will sit on the negotiating table with the U.S. Federal Reserve and major financial institutions, Swan Bitcoin’s Terrance Yang has said. According to Yang, the U.S. Department of Justice’s settlement with Binance has increased the likelihood of such an institution joining the negotiation table.

The Cantillon Effect

Terrance Yang, the managing director (MD) of the bitcoin exchange platform Swan Bitcoin, has defended the proposal to create enough “Bitcoin-only” companies saying this is the only way the crypto industry will be fairly represented at the negotiating table. According to Yang, the U.S. Department of Justice (DOJ)’s recent settlement with Binance has increased the chances of such an institution joining the negotiation table.

As was recently explained by Swan Bitcoin co-founder and CTO Yan Pritzker, the crypto industry needs to fight back against opponents who seem to have ratcheted up the pressure in recent years. Ordinarily, this can be achieved by having “a large selection of banks willing to do business with Bitcoin companies.” Nevertheless, in his Nov. 11 post on X (formerly Twitter), Pritzker suggested making companies in the crypto space “big enough to be relevant negotiators.”

Some critics argue that creating such powerful entities could have negative consequences for the industry in the long run. However, in his written answers sent to Bitcoin.com News, Yang doubles down on why Swan believes this to be the solution.

“For decades now the [U.S.] Federal Reserve Bank and all major banks and institutions have been the key negotiators at the table. We recently published a detailed study of why this needs to change and how [the] Federal Reserve drives the Cantillon Effect which in turn impacts inflation and fiscal debt,” Yang said.

Bad Actors Have an ‘Incentive to Feed and Spread False Narratives’

According to Yang, it is such Bitcoin-only companies that can fill the “void” which has grown each time authorities have gone after large crypto exchanges like Binance and Coinbase.

Concerning the perception certain players are not doing enough to counter false crypto narratives often peddled by critics like U.S. Senator Elizabeth Warren, Yang suggested this may be because they “have an incentive to feed and spread false narratives.”

Therefore, as the industry works on how to respond to the attacks which have seen the space shrink, Yang said only those with good standing should “write their Congressional representative, and speak out on social media.” In addition, such unblemished individuals and entities should “stop doing business with ‘bad actors’ that are facing lawsuits and are in trouble.”

While it is generally agreed that the recent actions by the U.S. regulators will prompt crypto firms to ponder leaving the United States, Yang is adamant that “bitcoin will [still] thrive in the U.S.”

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