Mike Pompeo, secretary of state of the United States, has recently indicated that cryptocurrencies should be regulated in the same way as financial institutions.
The pressures on how to regulate the crypto universe in the United States are increasing; many believe what the appropriate standards would be, however, we do not know if in affirming it they take into account whether this suffocates innovation.
Many probably agree by pointing out that they are completely different worlds so it cannot be expected that a regulation that works for traditional financial institutions should work in the crypto ecosystem.
Pompeo issued his opinion on Tuesday through an interview with Squawk Box of CNBC. In that interview, he was asked what he thought could be the best way to regulate Libra, the crypto Facebook project, or Bitcoin itself.
Swift for crypto
Pompeo also expressed his opinion, ensuring that he applied the same framework used by all digital financial transactions of the present. These are funds that move through the markets, or in some cases transactions with disintermediation. The Secretary of the Nation alleges that the best option would be to share the same modality of regulations for all electronic financial operations.
After this series of statements, he said he does not think it will be a simple task, but cryptocurrencies should be applied the same rules that apply to transactions through SWIFT.
However, the interview was not limited to talking about the perfect regulatory framework for the sector. Pompeo, who is one of Donald Trump’s closest advisers (so his opinion should not take us off guard), said that the anonymous transactions associated with cryptocurrencies represent a significant risk to the national security of the United States.
Many will be demanding to be explained why Pompeo points out such a thing; he explains:
“Look, the risk with anonymous transactions is one that we all know well. We know this by September 11 and the terrorist activity that took place in the 15 years prior to where we didn’t have a good follow-up, we didn’t have the ability to understand the money flows and who was moving it.”
Pompeo seems to pray every day so that the world does not move in the direction of anonymous transactions through cryptocurrency, since, according to him, this would greatly diminish the security of the world.
Keep in mind that, during the interview, Pompeo avoided making direct reference to Bitcoin or cryptocurrencies in general.
It is relevant to highlight a very particular detail, which we have often pointed out in Bitcoin.es; The US dollar is not as blameless as many might think.
The main criticism of Bitcoin (and of cryptocurrencies in general) is its decentralized, “anonymous” nature and the ability to be used in illegal markets. The reason he placed anonymously in quotes is that, at least in the case of Bitcoin, this is not completely anonymous. Just as you read it, BTC addresses certainly don’t reveal your real name directly but can be traceable.
Consequently, many authorities claim to be afraid of the capabilities of Bitcoin and cryptocurrencies, but it seems that they did not take into account that some studies have concluded that the US dollar is used in greater proportion for money laundering than Bitcoin. Not to mention that taking advantage of Pompeo’s mention of September 11, those behind the terrorist attack used US banks.
You can’t really deny that Bitcoin is used for illicit purposes, however, that doesn’t discredit its potential. And only this confirms the need for a regulatory framework proper to the needs of the sector.