Recently, Senator Elizabeth Warren expressed concerns about Bitcoin being used for illegal activities. She is drawing attention to its potential, and exaggerated misuse. However, I would argue that her comments are hypocritical and raise questions about her coherence and depth on the subject.
Elizabeth Warren: The Hypocrisy
Warren’s Bitcoin focus must have made her forget about traditional currencies. Specifically, the U.S. dollar is used extensively in illicit transactions. While she criticizes the decentralized nature of the digital asset, the U.S. dollar remains a preferred choice for those engaging in unlawful transactions. This is largely due to its widespread acceptance and anonymity.
Warren’s critique may come from a lack of understanding of the technology. In that case, let’s educate her. BTC operates on a transparent and traceable blockchain, making it less conducive for illegal activities. Cash transactions are inherently harder to track. Even Hamas said they are no longer utilizing Bitcoin for the safety of their donors due to the transparency of the network.
While it would be nice to give her the benefit of the doubt, another possibility could be Warren’s potential conflict of interest. The senator may benefit from the existing fiat system which has helped her amass millions. She might understand the technology and therefore has prejudice about adopting a decentralized currency like Bitcoin. It could diminish the power and influence of traditional financial systems and in turn, diminish her power and influence.
Related reading: Hillary Clinton Thinks Bitcoin Could Undermine Role Of The Dollar And Destabilize The Country
While Warren emphasizes the need for regulations to curb illicit activities associated with digital assets, similar measures already exist for traditional currencies and yet the U.S. dollar remains the dominant currency for illicit financial transactions.
The American institute for economic research says “more than a third of all US currency in circulation is used by criminals and tax cheats.” A Forbes article cites UN data that says crime makes up 2-5% of global GDP, while illicit activity in the cryptocurrency space is estimated at 1.1%.
Related reading: Wall Street Journal Bias Fueled Anti-Bitcoin Sentiment in the US
The “Criminals”
The criminals she speaks of are the Ukrainians fleeing their homes, utilizing Bitcoin as a tool to maintain control of their wealth. When the Central Bank suspended electronic cash transfers and cash withdrawals, they were able to use BTC instead so they weren’t left penniless.
They are the unbanked in Africa, South America, and the Asia pacific who are utilizing Bitcoin to grow and better their communities. With inability to become banked in the first place, Bitcoin can fill the void. There is no need to have IDs and documents or fill out applications in order to be their own bank.
They are the people who no longer want to partake in the corrupt fiat system full of actual criminals. A system where our money is slowly becoming worthless while everything around us becomes more expensive.
Lack of Depth
It is painfully clear that people in high places, who are the most vocal about Bitcoin being a threat, are the same people who benefit the most from the corrupt fiat system — the very same system Bitcoin was created in spite of. They are creating their own false narratives in an attempt of grasping at straws. I think they understand what’s coming, and they are doing and saying whatever they can in an attempt to avoid the unavoidable.
We know how ridiculous it all sounds, yet it is infuriating to hear, because everyone who is not yet stacking is hearing it too. It becomes another hurdle we have to jump in advocating for Bitcoin acceptance (At this point we are Olympic athletes so one more hurdle isn’t that big of a deal.)
China has banned bitcoin a multitude of times but Bitcoin is still being used there. All they are doing is preventing their country from benefitting, not individuals.
Conclusion
As discussions around Bitcoin regulations continue, it is crucial to think about the existing financial system and its role in facilitating illicit transactions. Bitcoin has been used by bad actors but the fiat system is comparatively worse by every measure. None of this is new information, but it’s important to continually battle these false narratives as the corrupt global leadership desperately tries to hold onto their power.
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