FBI Director Says Cryptocurrency is a Significant Problem

FBI Director Christopher Wray testified before the Senate Homeland Security Committee at a hearing on cryptocurrency problems facing the United States.

08 November 2019, AtoZMarkets At a recent US Senate Committee hearing on Government Affairs and Homeland Security, Senator Mitt Romney showed concern about cryptocurrency’s potential as a threat to national security. Christopher Wray responded that cryptocurrency is a concern and it will become bigger.

FBI Director Concern Cryptocurrency Problem 

As more and more countries begin experimenting or talking about the development of their own central bank digital currencies (CBDCs) and the regulation of cryptography. In general, unlicensed cryptography like bitcoin is the subject of lively debate. Utah’s Republican senator was certainly unaware of the nature of cryptocurrencies. But he concerned about Tuesday’s hearing. Romney is the National Counter-Terrorism Center, and FBI leaders. Speaking to Homeland Security, he said that he is not part of the Banking Committee. He does not understand how cryptocurrency works. He thinks it’s harder to do a job when we cannot track the money. Because the money is hidden.

The FBI director noted that the agency considers cryptography from an investigative point of view. That is including the tools we have to try to track the money. Citing the increasing efficiency with which criminals can use new technologies and anonymization tools. Wray was nevertheless reluctant to commit to making statements about the proposed regulations. He said that for them, cryptocurrency is already a big problem. And they can easily predict that it will become more and more important. It doesn’t matter that it is regulated or not. Because it is harder for him to answer that question.

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CBDC And Libra Are In The Spotlight

The digital currencies of the central bank and Libra are both in the spotlight. Yet, the real focus of much of the government unease seems to be around crypto and permissionless variations of digital money. Romney, like other legislators in the country, is concerned about compliance and crime. While the CBDCs would be easily monitored and controlled centrally. That would make money laundering and tax evasion difficult. Permissionless crypto allows easier disobedience to established laws. Romney said during the recent hearing that he wonders if they should not make efforts in their country to fight against the cryptocurrency problem.

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