Michael Morel, a former CIA director, disputes that Bitcoin is full of illicit activity and that this attitude undermines technological supremacy.
Michael Morell, the former director of the Central Intelligence Agency (CIA), disputes the narrative that Bitcoin is full of illicit activity.
In an independent article, Morell concluded that generalizations of illicit activities on the Bitcoin network are overstated. At the same time, he added that blockchain analysis serves as an effective method of combating crime and intelligence gathering.
There is less activity
Before embarking on the study, Morell admitted that mainstream narratives, such as those made by U.S. Treasury Secretary Janet Yellen and ECB President Christine Lagarde, had already influenced their bias towards an anti-bitcoin position.
However, in Chainalysis’ assessment, Morell soon realized that there was more illicit activity carried out in traditional finance than in Bitcoin.
“Just the opposite, which [Bitcoin e Cripto] they were not full of illicit activity. In fact, there is probably less illicit activity in the Bitcoin ecosystem than in the traditional banking system “.
He noted that the data shows that less than 1% of Bitcoin activity refers to crime. In addition, that number has dropped dramatically since 2012.
Kim Grauer, head of research at Chainalysis, said that crypts maintain a reputation for anonymity. But she dismissed this fallacy, showing that Bitcoin is bad for crime.
“Transactions involving cryptocurrencies like Bitcoin are recorded in a permanent, public and immutable book, cryptos can really offer unprecedented transparency in financial transactions.”
Bitcoin is most accurately described as a pseudo-anonymous network. While anyone can open a suitable wallet without providing KYC information.
Staying out of crypto means losing to China
Morell said misconceptions about bitcoin and crime 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 ensure that the conventional wisdom that is wrong about the illicit use of Bitcoin does not keep us back from advancing the technological changes that will allow us to keep pace with China.”
China restricts its citizens to trading cryptocurrencies, especially by converting yuan to tokens. However, his leadership actively encourages blockchain projects.
Bank of China Li Bin announced this week that six new regions, including Shanghai and Hainan, have been added to the pilot program for the digital Yuan.
This is a far cry from the Fed, which expressed indecision on whether a digital dollar will be launched.