Cryptos Offer A Solution To Tackle Money Laundering
“If you live in a glass, house best not to throw stones”! Banks have suffered over $320 billion in fines since 2008, thus not covering themselves in glory! Incredible really that the U.S. Treasury Secretary, Steven Mnuchin, lambasted Cryptocurrencies in a recent press conference, saying how Cryptos were riddled with money-launderers and were funding terrorism. While undoubtedly some Bitcoin users have carried out nefarious activities, the track record of our so-called “safe” and highly regulated banks is hardly inspiring!
· Well Fargo allowed the Mexican drug cartel to launder $278 billion.
· JPMorgan handling $5.3 billion — the US treasury fined the bank for violating the ‘’Cuban Assets Control Regulations, Iranian sanctions, and Weapons of Mass Destruction sanctions 87 times.’”
· HSBC, in 2012, had to pay $1.9 billion fine for money laundering, terrorism and drug cartel involvement.
· Danske Bank, in 2017 — laundering more than $230 billion worth of dirty money out of the Soviet countries.
· The US CIA also sent millions of dollars to the most violent terrorist groups to fund Pakistan and Afghanistan in the 1980s.
Why would you use a Cryptocurrency that creates a DIGITAL footprint as opposed to US Dollar bills?
Furthermore, over 90% of all US $ bills have traces of cocaine on them!
On the other hand, in the USA, The Foundation for Defense of Democracies found that less than 1% of Bitcoin is used for illegal purposes. Even the IMF has been praising Digital Currencies, saying that they could potentially replace Fiat currencies in time!
Indeed, given the high profile and press comment around Digital currencies (following the announcement from Facebook and its Libra currency proposal) we have seen the Crypto community respond. The CEO of Ripple has recently written an open letter to the US House of Congress stating,
Meanwhile, in Asia, where Cryptocurrencies are treated with less suspicion, Union Bank of the Philippines has successfully used Blockchain technology to remit money from Singapore, becoming the first Philippine bank ever to do so.
Provided that compliance systems are “baked in” to a Digital Currency, these currencies could improve the control governments have, quash money-laundering activity, and help reduce the size of the black economy.
For more #DigitalBytes like this email: Jonny.Fry@TeamBlockchain.net