Goldman Sachs senior chairman Lloyd Blankfein has stated that regulators must “hyperventilate” in response to Bitcoin’s recent success, with the crypto asset being characterized as undermining lawmakers’ ability to control the financial system.
While appearing in CNBC’s Squawk Box on Jan. 25, Blankfein claimed that Bitcoin’s pseudonymous nature makes it perfect for illegal funding, saying revolutionary guard. “
Despite the fact that authorities often use the transparency of blockchain to monitor the use of crypto by terrorist organizationsBlankfein wondered how regulators can allow crypto assets to flourish in their existing form.
‘If I were a regulator, I would hyperventilate a bit on the success of [Bitcoin] right now, and I would be arming myself to deal with it, ”he said
In order to align Bitcoin with the existing financial and regulatory apparatus, Blankfein argues that many of the fundamental freedoms enabled by BTC must be limited. However, he wondered if strong demand for Bitcoin would continue without the pseudonymous privacy features:
“This could be workable, but it will undermine the freedom and lack of transparency that people like about it in the first place. So that’s the mystery Bitcoin will have to clear its way. “
Blankfein also criticized Bitcoin as a repository of value, emphasizing the price volatility and technological literacy required to keep BTC in-house.
“It’s a store of value that can shift 10% a day, that if you lose the code or if you lose the paper – it’s lost forever, or if someone takes it from you – how do you know,” said he.
In August, the US Department of Justice announced that this was the case confiscated for millions in crypto from more than 300 wallets related to Al-Qaeda and ISIS.
In the announcement, Don Fort, head of the IRS criminal investigation, or IRS-CI, stressed that the agency could have traced the crypto to its source, allowing it to dismantle the group’s financial networks.