Embracing Bitcoin is now a matter of national security says former CIA Director | CryptoSlate

CryptoSlate

Michael Morell, the former Acting Director of the Central Intelligence Agency, disputes the narrative Bitcoin is full of illicit activity.

In an independent paper, Morell’s research led him to conclude that generalizations of illicit activity are overstated. Simultaneously, adding that blockchain analysis serves as an effective method of fighting crime and gathering intelligence.

How To Get Free Crypto  

Bitcoin is a terrible vehicle for hiding criminality

Before embarking on the study, Morell admitted that mainstream narratives, such as those pushed by U.S. Treasury Secretary Janet Yellen and ECB President Christine Lagarde, had already swayed his bias towards an anti-Bitcoin position.

However, in evaluating data from blockchain analysis firm Chainalysis, Morell soon realized there was more illicit activity conducted in traditional finance than Bitcoin.

“Just the opposite, that [bitcoin and crypto] weren’t rife with illicit activity. In fact, there was probably less illicit activity in the Bitcoin ecosystem than there is in the traditional banking system.”

He noted that the data shows less than 1% of Bitcoin activity relates to criminality. What’s more, this figure has fallen dramatically since 2012.

Source: forbes.com

Kim Grauer, the Head of Research at Chainalysis, said cryptocurrencies hold a reputation for anonymity. But she dismissed that fallacy, implying Bitcoin makes for a poor way to hide criminality.

Coinbase Banner  

“But because transactions involving cryptocurrencies like bitcoin are recorded on a permanent, public, and immutable ledger, cryptocurrencies can actually offer unprecedented transparency into financial transactions.”

Bitcoin is more accurately described as a pseudo-anonymous network. While anyone can open a suitable wallet without providing KYC information, on/off-ramping can trail links between identities and wallets.

Failure to get on board with crypto means losing out to China

Morell said misconceptions about Bitcoin and criminality are factors in U.S. authorities failing to embrace cryptocurrencies and blockchain technology in general.

He warned that this attitude could lead to losing the “technological cold war” with China.

“we need to make sure that the conventional wisdom that is wrong about the illicit use of Bitcoin doesn’t hold us back from pushing forward the technological changes that are going to allow us to keep pace with China.”

China restricts its citizens from trading cryptocurrency, especially converting yuan to tokens. However, its leadership actively encourages blockchain projects.

Li Bin, the Head of the People’s Bank of China, announced this week that six new regions, including Shanghai and Hainan, have been added to the pilot testing program for the digital yuan.

This is a far cry from the Fed, who have voiced indecision on whether a digital dollar will roll out.

FreeBitcoin Banner  

Get an edge on the cryptoasset market

Access more crypto insights and context in every article as a paid member of CryptoSlate Edge.

On-chain analysis

Price snapshots

More context

Join now for $19/month Explore all benefits

Posted In: Uncategorized

Like what you see? Subscribe for updates.

Go to Source
Author: Samuel Wan


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.