According to US Fed Officials Half of Bitcoin Transactions Are Related To Illicit Activity

News / 18.12.2019

Many people believe different things about Bitcoin and cryptos, and it includes their use by criminals to perpetrate illegal activities. One of the members of the Federal Reserve governors of the U.S. seems to think that one in four individuals who utilize BTC is criminals.

Lael Brainard was particularly selected for the panel in an event about “Monetary Policy: The Challenges Ahead.” She stated the anticipated risks that cryptos still present in the remarks delivered during the event on December 18 in Frankfurt, Germany. She spoke as one of the panel honoring Benoît Coeuré, a member of the executive board of the European Central Bank (ECB).

Brainard, in her words, pointed at an academic study carried out some months ago in 2019 and mentioned that BTC still possesses a remarkable malicious user base. She expressed herself as follows:

“Only a third of the most popular exchanges require ID verification and proof of address to make a deposit or withdrawal. This is troubling, since a number of studies conclude that cryptocurrencies support a significant amount of illicit activity.”

As much as 50 percent of every BTC transaction was somewhat carried out against the law, she added:

“One study estimated that more than a quarter of bitcoin users and roughly half of bitcoin transactions, for example, are associated with illegal activity.”

Her speech seemed cautionary and is in line with existing misconceptions concerning the real-world usage of BTC. Cointelegraph reported that studies concerning BTC transactions often bring about antagonistic conclusions, while others say that a lack of anonymity represents the preference for cash by genuine criminals.

Other difficulties have to do with determining the number of individuals utilizing BTC as it is possible for a user to control a limitless number of addresses.

She spoke at the event as the enforcement of the new crypto regulations in the European Union is imminent.

Coeuré is still quite critical of BTC, as he described it in previous times as the “evil spawn of the financial crisis.”


Featured image courtesy of Shutterstock. Source: CryptoPress.

Dacosta Osei-Tutu, a first degree holder in Nursing, who couples his Nursing career with blockchain blogging, has a great passion for the blockchain technology and aims to play a vital role in applying this revolutionary technology to disrupt the healthcare system in Africa.