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.
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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.
Brainard stated:
“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.”
She added:
“One study estimated that more than a quarter of bitcoin users and roughly half of bitcoin transactions, for example, are associated with illegal activity.”
<img src="https://www.cryptonewspoint.com/wp-content/uploads/2019/12/5e96c54a-e39c-11e7-8ff5-d91dc767c75e_1280x720_145519-1024x683.jpg" alt="" class="wp-image-7225 lazyload" width="403" height="268" />
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.
Source: cointelegraph.com