Glenn Hutchins, the co-founder of a global technology investment firm, Silver Lake, opted for the dismissal of the long belief that bitcoin was primarily used for criminal activities. Hutchins explained that this assumption is ignoring the immutable nature of this technology regarding blockchain on which bitcoin is specially built.
“In the US, 80-90% of $100 dollar bills are used for organized crime and tax evasion, and there’s a very good reason for that – they’re untraceable and fungible,” he said.
Bitcoin is leaving an unalterable record, which is why most criminals use it and get caught. It is wrong fundamentally to say that bitcoin is mostly involved in crimes.
The research of the blockchain data firm, Chainalysis finds out that the illicit activities with cryptocurrency transactions came with 0.34% of volume in this year. With organized crime, the selling of stolen goods, drug dealing, and smuggling are some of the reasons for crypto residence to come forward with the mainstream financial players.
Janet Yellen says that the government should look out for encouraging the use of cryptocurrency for legitimate purposes while “curtailing their use for malign and illegal activities.”
This assumption regarding the crypto’s use in criminal activities is meeting skepticism, which helps in the volatility of bitcoins.
The criminals are probably drawing greater anonymity of the cryptocurrency, which is offering a comparison with other digital money forms for its unstable value.
Bailey says the regulation is about “defining where the public interest lies.”
Being a part of this means to address its use for criminal activities and privacy breach of users, along with instability in value. The failure is driving the cost of using cryptocurrency or CBDC for sending payments and transact, which is not going to feed the public interest.