Lael Brainard, a member of the United States Federal Reserve’s Board of Governors, appears to believe that one in four people who use Bitcoin (BTC) are criminals.
In Frankfurt, Germany, Brainard highlighted the perceived risks, which still posed by cryptocurrencies. However, she was speaking as part of a panel honoring Benoît Coeuré, a member of the Executive Board of the European Central Bank (ECB).
According to Brainard, who cited an academic study from earlier this year, Bitcoin still contains a significant malicious user base.
Specifically selected for the panel, which formed part of the “Monetary Policy: The Challenges Ahead” event in Frankfurt, Germany, was an illicit activity involving Bitcoin.
“Only a third of the most popular exchanges require ID verification and proof of address to make a deposit or withdrawal. This is troubling, since a number of studies conclude that cryptocurrencies support a significant amount of illicit activity.”
“One study estimated that more than a quarter of bitcoin users and roughly half of bitcoin transactions, for example, are associated with illegal activity.”
As it has been reported, studies into transactions regularly produce opposing conclusions, others suggest that a lack of anonymity means genuine criminals still prefer cash.
Thus, further difficulties lie in stating that exactly how many people use Bitcoin, as a user can control an infinite number of addresses.
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