Lael Brainard, a member of the Governor’s Board of the United States Federal Reserve, is pretty persuaded that a substantial amount of Bitcoin (BTC) transactions are being associated with illicit activities.
During his speech at the seminar on “Monetary Policy: The Challenges Ahead” held on Dec. 9 in memory of Benoît Coeuré, an affiliate of the Executive Board of the European Central Bank (ECB) based in Frankfurt, Germany, Brainard highlighted some of the potential threats that are still linked with cryptocurrencies.
In his speech, Brainard cited a research study that was issued earlier this year, which revealed that numerous illegal activities are carried out using cryptocurrencies since most of the time, the verification processes are not efficiently conducted.
Brainard also appealed that in order to make withdrawals or deposits, only one-third of the most common exchanges need ID verification and proof of address, emphasizing that it is quite alarming as several reports suggest that cryptocurrencies facilitate a considerable amount of illegal activities. As much as half (50%) of all Bitcoin trades were in some way steered against the law, Brainard added.
Notably, in November 2018, Coeuré described Bitcoin as the evil spawn of financial catastrophe, expressing his disfavor of cryptocurrencies. However, AFME reported last month that if the European Union were able to regulate its crypto space, Europe would be ready to dominate cryptocurrency on a global scale.