Forum participant in Davos refutes Bitcoin’s suitability for crime

The claim that Bitcoin offers advantages for criminal activity runs counter to the fundamental characteristics of the blockchain technology underlying it. This was stated by Glenn Hutchins, co-founder of the investment firm Silver Lake, at the World Economic Forum in Davos, Finextra reports.

\n

“Bitcoin’s blockchain creates a permanent, immutable record of a transaction, so the movement of funds is easy to trace. To claim that Bitcoin is mainly used for crimes is fundamentally false,” Hutchins said.

\n

He also noted that up to 90% of the Federal Reserve’s issued $100 notes are connected to organized crime and tax evasion:

\n

“There is a good reason for this—the dollars are not tracked and interchangeable,” he explained.

\n

Glenn Hutchins emphasised that cryptocurrencies are a fundamental innovation, and smart contracts open a completely new way to apply blockchain by governments and companies.

\n

Earlier, according to Chainalysis, 1.1% of cryptocurrency transactions by value were linked to illicit activity. In 2020 this figure fell to 0.34%, and the share of crime-related transactions in DEX turnover stood at 0.02%.

\n

Earlier at the World Economic Forum, Bank of England Governor Andrew Bailey said that the volatility of cryptocurrencies cannot guarantee the stability needed to use them as a means of payment in the long term.

\n

At the same time, he acknowledged that blockchain addresses the speed and cost issues of processing payments in the traditional financial system. He backed discussions among countries on the advantages of stablecoins and central bank digital currencies.

\n

The second part of the session on cryptocurrencies will take place on Thursday, 28 January.

\n

Subscribe to ForkLog’s channel on YouTube.