US Fed bank official says 50% of Bitcoin transactions are associated with illegal activity according to study

posted 4 months ago
A member of the United States Federal Reserve’s board of governors, Lael Brainard, spoke at an event organized by an executive of the EU Central Bank, Benoît Cœuré (who had said Bitcoin is an “evil spawn of the financial crisis.” At this event there was a panel discussing illicit activity involving Bitcoin, Brainard said “One study estimated that more than a quarter of Bitcoin users and roughly half of Bitcoin transactions, for example, are associated with illegal activity... Bitcoin still contains a significant malicious user base… 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.”

It’s worth noting that other studies suggest Bitcoin lacks anonymity and that criminals still prefer cash, furthermore, it’s difficult to state exactly how many people use Bitcoin, as a user can control an infinite number of addresses.
Tags: opinion, bitcoin