US Secretary of State Mike Pompeo: We must regulate cryptocurrencies like other electronic financial services

US Secretary of State Mike Pompeo: We must regulate cryptocurrencies like other electronic financial services

By MonoBlack | Mono Black News | 22 Aug 2019


Pompeo suggested that Bitcoin is a threat to national security, and to illustrate the point, he referred to the anonymity of transactions related to the September 11 attacks.

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US Secretary of State Mike Pompeo, one of Donald Trump's closest advisors, who said last month that he is not a Bitcoin fan, said yesterday, August 20, that cryptocurrencies, such as Bitcoin and the next Libra cryptocurrency Facebook should be regulated in the same way as all other electronic financial transactions.

Pompeo shared his opinions in an interview with CNBC, and said: "The same set of requirements that apply to things that flow through SWIFT or that flow through our financial institutions should also apply to those transactions." And I add:

My opinion is the following: we should use the same framework that we use to regulate all other electronic financial transactions today. That is essentially what they are. These are funds that move through the markets, or in some cases transactions without intermediation.

 

 

September 11 the example

During the discussion that covered a variety of topics, from Hong Kong protests, which caused the cessation of BitMex activities, to state propaganda farms using Twitter and Facebook, Pompeo suggested that the "anonymous transactions" associated with cryptocurrencies (almost always incorrectly) presented a significant risk to national security, due to its role in terrorist financing and money laundering.

He argued that if such private transactions became the norm, "the security of the world would decrease if that is the direction in which we travel." To illustrate his point, he invoked the terrorist attacks of September 11.

«The risk with anonymous transactions is one that we all know well. We know from September 11 and the terrorist activity that took place in the previous 15 years, where we did not have a good follow-up; We didn't have the ability to understand money flows and who was moving money, ”said Pompeo, and emphasized:

"We need to preserve a financial system, a global financial system, that protects that," he said, without mentioning the efforts of the FATF (FATF) and the G20 in issuing and promoting guidelines to combat financial crimes.

 

 

Financed in US dollars

According to the CCN media, the terrorist attacks of September 11 occurred long before the creation of Bitcoin and the US dollar served as the main instrument of payment for the attackers. Even a report revealed that terrorists continue to prefer cash rather than cryptocurrencies.

Even so, the idea that cryptocurrency will finance the next major terrorist attack continues to gain ground in regulatory circles, and rightly so.

Earlier this week, the New York Times published a report claiming that Hamas and other terrorist groups have begun using Bitcoin as a tool to finance illegal operations and limit the ability of governments to track the source of their funds.

Gabor Gurbacs, the cryptography chief of the fund provider VanEck rejected Pompeo's narrative, arguing that Bitcoin "has the potential to increase the security of the financial and payment infrastructure for the United States and the world.

" Your best solution? A Bitcoin ETF.

@SecPompeo — Bitcoin has the potential to increase financial and payments infrastructure security for the United States and the world. I have a few projects that I should brief you on. Here is for instance how a Bitcoin ETF May serve the public interest. https://t.co/PQc3RIdlHk

— Gabor Gurbacs (@gaborgurbacs) August 20, 2019

 

 

If you want to watch the interview click here:

 

 

Sources: CNBC, Coindesk, CCN.
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MonoBlack
MonoBlack

MonoBlackNews is a totally independent information medium specialized in Bitcoin, advances in Blockchain technologies, cryptocurrencies and other forms of digital money.


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