Goldman Sachs CEO believes that if bitcoin is able to keep up with its current trend, lawmakers will not be able to monitor it. According to him, legislators should take a “very active” approach to legislation in this area.
To Report The Telegraph’s Lloyd Blankfein, chairman of Goldman Sachs, citing Bitcoin’s ability to circumvent legislators’ oversight, said lawmakers should be “extremely active” in responding to Bitcoin’s recent success.
In an interview with CNBC’s Squawk Box yesterday, Blankfein said that Bitcoin’s ability to conduct transactions under pseudonyms has made it a great tool for financing crimes. He continued:
You do not know that you are transferring bitcoins to North Korea, al-Qaeda or the Revolutionary Guards.
Although officials around the world use the Blockchain and its transparency feature to track the use of digital currencies, Blankfin raises the question of how legislators can allow digital currencies to thrive. He adds:
If I were a legislator, at the time of success [این چنینی] I was very active in bitcoin. I was personally preparing myself to take the necessary steps.
“In order for Bitcoin to be in line with current financial regulatory structures, we need to eliminate some of the fundamental freedoms it offers,” Blankfein said. However, he believes that without these anonymity capabilities, there will still be strong demand for bitcoin. He said in part of his speech:
This is possible, but it neglects freedom, initiative, and a lack of transparency. These were the things that made people interested in Bitcoin; For this reason, this is a challenge that Bitcoin must meet in its own way.
Criticizing the ability to store bitcoin value and emphasizing its high volatility, Blankfein says that personal maintenance of bitcoin requires knowledge in the field of technology.
Bitcoin is a store of value that may fluctuate by 10% in a day. On the other hand, if you lose your code or a piece of paper or someone takes it from you, your bitcoins will be lost forever. It cannot be said that this will not happen.
In August, the US Department of Justice announced that it had seized millions of dollars in digital currency from 300 wallets affiliated with al-Qaeda and ISIS.
Don Fort, head of the US Internal Revenue Service’s criminal investigation department, also said in a statement that the department had succeeded in tracking down the financial sector of the terrorist groups by tracing the origins of digital currencies.