Former CIA acting director, Michael Morell, argued that the tech behind Bitcoin (BTC) is severely underutilized as a powerful forensic tool for authorities to classify adverse activities that could put several criminal personalities to jail. Morell argued this notion in the report co-authored by Thomas Schoenberger and Josh Kirshner titled ‘An Analysis of Bitcoin’s Use in Illicit Finance,’ which aims to rectify the growing concerns that cryptos are only predominantly used on illicit financing.
The report, which was notably published by the newly formed Crypto Council advocacy group spearheaded by Square and Coinbase, concludes that the current governments only see BTC as a tool used by criminals for illegal finance, when in reality; it can be smartly utilized to catch them instead. The report summarizes that blockchain data, at its very core, could prove to be a highly effective and cost-efficient tool for intelligence amalgamation and criminal purging.
As per Morell, BTC’s financial use should actually be seen as predominantly legal as there is currently no data existing that backs the two most negative assertions of regulators regarding the crypto. One is that the use of BTC in illicit financing is continually growing, and two, that BTC’s primary use case is for illegal purposes. The ex-CIA official dismisses just that as he argues that such is but an uninformed notion – there are no presently existing numbers or methodologies that support such damaging claims.
This is then further reinforced by the supporting data provided by CipherTrace, which notably shows that only 0.5% of BTC’s total trading volume can be traced back to having some sort of illegal use. This is but a fraction of the same metrics found compared to fiat currencies, which estimates at about 2% to 4%. With that, Morell concludes that illicit use of fiat currencies is what regulators should ultimately be warier of, not cryptocurrencies.