In 2013, HSBC was fined for failing to appropriately monitor nearly $700B(B as in BILLION) in transactions between Mexico and the US alone. [1] Yet we're supposed to be more worried about digital currency because of $600 (dollars, not millions or billions, just dollars) worth of bitcoin found its way to the Gaza strip? [2]
The only interesting part of this article is that post publication, the bitcoin numbers were updated by a source from the Dept. of Treasury.
This article is just FUD and nonsense during a slow news cycle. Banks and wire transfers will continue to be the primary vehicle for money laundering and terrorism financing for the foreseeable future.
I think the fact that HSBC laundered $700B and got away with a slap on the wrist, while the government wants to crack down on $600 in Bitcoin, is an extremely important and telling factoid.
The article specifically says Bitcoin is thought to be too transparent for terrorists to use seriously, and that the gov't is more worried about the possibility of new, les traceable cryptocurrencies being developed.
Excellent point. Here in the US, we have payoffs to government officials on the local, state, and national levels.
I like the idea of a Bitcoin like currency with 100% transparency in universal use. Privacy is important to me, but if everyone on earth had access to all financial transactions that would help stop corruption. Use case: turning my personal software agent to free to evaluate candidates in upcoming elections, not invest in companies if I dislike who they do business with, etc.
There are many ways to evade such a system already. For example, one of our ex-PMs didn't get any money from a certain company; they just paid €25M to another guy, who was such a friend that he paid for the ex-PM's home, hired his wife and driver, bought thousands of copies of his book, etc.
Don't disagree with you that Bitcoin's current role is small potatoes. Don't disagree that Newsweek (and this author) aren't especially great sources of information.
That being said, writing it off as FUD is premature. The fact that it is getting written tells you where media and possibly government focus is now. We can either write that focus off or consider the implications.
Terrorist and criminal organizations are some of the most effective users of new media in the world. ISIS produces some of the most slickly-produced videos you'll ever see. They know and harness Telegram and other apps. If they are not stupid - and they aren't, they're looking for whatever advantages they can get. We can acknowledge this without a bias for or against cryptos.
The Bitcoin and cryptocurrency community has since birth by and large been about speculation and making stacks of cash. That's been it's reason for existence and adoption practically - otherwise it would just make for really cool tech that we all talk about on HN. It's been running straight ahead with fully anonymous protocols which while great have the most natural application in black market purchases, and early adopters/users that while they have a right to use them, practically don't need to - their actions are tracked via hundreds of other unrelated means.
The cryptocurrency community has done really poor job of policing itself. It's done a really excellent job of attracting attention through exchange after exchange being hacked and/or scams. Maybe it can't and shouldn't try to restraining itself or police itself, but the natural result of that is someone else is going to police it or shut it down.
Instead of just saying it's FUD, this article is probably ahead of the curve. This is going to become a bigger and bigger issue. Either Bitcoin advocates find out effective arguments or means or it's going to get shutdown.
If they really worried about $600 in the Gaza strip, what happens when that turns to $600k and then $6 million? Because that will happen as the technology advances. Does that give governments the right to intervene? No, but it makes a bigger and bigger target.
There might not be an effective solution, but it's the canary in the coal mine. The US government was never just going to let this stuff happen unhindered.
The fact that they are paying attention when there's not much to pay attention to is all you need to know. Just wait until there's a sizable sum a politician can make a media campaign out of...
The only interesting part of this article is that post publication, the bitcoin numbers were updated by a source from the Dept. of Treasury.
This article is just FUD and nonsense during a slow news cycle. Banks and wire transfers will continue to be the primary vehicle for money laundering and terrorism financing for the foreseeable future.
[1] https://www.bloomberg.com/news/articles/2013-07-02/hsbc-judg...
[2] https://www.thecipherbrief.com/column/private-sector/new-fro...