Tim Draper says cryptocurrencies, bitcoin are good for humanity

Venture capitalist Tim Draper told CNBC on Friday that bitcoin is good for humanity and that federal regulators should give it room to flourish.

Cryptocurrencies have faced increased criticism from Washington, D.C., after Facebook announced that it and dozens of other companies are developing a new cryptocurrency called Libra.

However, Draper said on “Squawk Alley ” that he believes the larger spotlight is good for bitcoin overall.

“It’s bringing it to light. It’s good to have people talk about it because the more they talk about it, the more they realize how important bitcoin is going to be for the planet, for all of us,” Draper said.

The veteran tech investor cited the potential for decreased transaction costs and ease of international payments as ways that cryptocurrencies would benefit humanity.

“This is one of the best things that’s ever happened to us,” Draper said.

Draper — one of the first investors in failed blood-testing start-up Theranos and a defender of its embattled…