Lael Brainard, a member of the United States Federal Reserve Board of Governors, is quite convinced that a significant amount of Bitcoin (BTC) transactions are used for illegal activities.
Speaking at the “Monetary Policy: The Challenges Ahead” seminar held in honor of Benoît Coeuré, a member of the Executive Board of the European Central Bank (ECB) in Frankfurt, Germany on Dec. 18, Brainard emphasized on some of the potential dangers that are still associated with cryptocurrencies.
She cited a research work that was published earlier this year, which revealed that several illegal activities are conducted using cryptocurrencies since most times, the verification processes are not carried out effectively.
She said, “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.”
“One study estimated that more than a quarter of bitcoin users and roughly half of bitcoin transactions, for example, are associated with illegal activity,” she added.
Coeuré is also not in favor of cryptocurrencies, especially bitcoin, which he earlier in November 2018, described as the “evil spawn of financial crisis.”
Last month, however, the Association for Financial Markets in Europe (AFME) stated that if the European Union (EU) could provide regulation for its crypto space, then Europe could dominate the global crypto industry.
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