Silver Lake co-founder Glenn Hutchins has dismissed the long-held belief about bitcoin’s primary use in criminal activity, according to Finextra. Hutchins says the assumption ignores the immutable nature of the blockchain technology on which bitcoin is built.
- Hutchins says that about 80-90% of 100 dollar bills in the U.S. are used for organized crime and tax evasion since they are untraceable and fungible.
- Hutchin has defended bitcoin since it leaves a permanent, unalterable record, which means that criminals using it would be caught.
- Data firm Chainalysis research shows that illicit activity made up only 0.34% of cryptocurrency transaction volume in 2021, down 2% from a year before.
- U.S new treasury secretary Janet Yellen has called the government to look into ways to encourage the use of cryptocurrency for legitimate purposes.
- The assumption about crypto’s use in criminal activity has sparked skepticism, given the inherent volatility of currencies like bitcoin.
- Criminals may be drawn to the greater anonymity of cryptocurrency offers than other digital forms of money but be put off by its unstable value.
- The possibility of any currency being used in criminal activity must be a consideration in developing a regulatory framework to drive adoption – Bank of England governor Andrew Bailey.
Bitcoin is currently gaining. BTCUSD is up 6.24%
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