Opponents of cryptocurrencies strike hard!

In the United States, two groups of thoughts clash in the corridors of Congress. On the one hand, the supporters of cryptocurrencies who pressure lawmakers to pass laws in favor of these digital assets and on the other, the opponents.

Recently, a group of 26 experts sent a lobbying letter to US lawmakers urging them to resist any pressure they might face from cryptocurrency supporters.

A National Threat to the United States

Not everyone likes cryptocurrencies. Some people are also very bitter towards the sector. This is the case of software developer Stephen Diehl and Google Cloud engineer Kelsey Hightower. For them and for the other signatories to the letter tabled in Congress, blockchain technology has “little, if any, use in the real economy”. Furthermore, they claim that cryptocurrencies are a national threat and present financial stability risks and massive climate emissions.

The letter was addressed to both Senate Majority and Minority Leaders and several other high-ranking members of the Senate. Here is an excerpt: “We urge you to resist pressure from financiers, lobbyists and digital asset industry promoters to create a regulatory haven for these risky, imperfect and unproven digital financial instrumentsand instead adopt an approach that protects the public interest and ensures that technology is deployed in the genuine service of the needs of ordinary citizens”.

Cryptocurrencies and money laundering

Signatories to the letter indicated that blockchain-based financial products are a “disaster for financial privacy”. They also argue that these assets constitute “a gift for people who do money laundering”. However, claims that cryptocurrencies are tools in the hands of money launderers are not necessarily justified.

Indeed, according to a 2022 report by blockchain analytics firm Chainalysis, money laundering accounted for only 0.05% of all cryptocurrency transactions in 2021. For comparison, the United Nations Office on Drugs and Crime has estimated that between $800 billion and $2 trillion in fiat currency is laundered each year, representing up to 5% of GDP global.

Diehl, one of the most outspoken cryptocurrency critics on Twitter, reportedly told the Financial Times that the letter is aimed at “counter-lobbying” cryptocurrency industry players who “say what they want to politicians”. Former Microsoft engineer Miguel de Icaza added that the cryptocurrency industry waste millions of dollars worth of equipment because we have decided not to trust the banking system”.

In the United States, the status of cryptocurrencies is hotly debated and they find themselves in a turmoil. If on one side there are the supporters, on the other there are the opponents of digital assets. The latter have filed a letter to Congress asking that laws in favor of cryptocurrencies not be passed.

Source: Crypto Briefing

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