Goldman Sachs’ CEO believes that if Bitcoin is allowed to thrive in its current form, regulators will not be able to monitor the financial system.
Undermining Bitcoin and the Financial system
Lloyd Blankfein, senior president of Goldman Sachs, described the crypto asset as undermining the capacity of lawmakers to monitor the financial system, stating that regulators should “hyperventilate” in response to Bitcoin’s recent success.
Participating in CNBC’s Squawk Box program on January 25, Blankfein claimed that the fake nature of Bitcoin made it perfect for illegal financing and said: “It benefits North Koreans, al-Qaeda or revolutionary guards.”
Despite the frequent use of blockchain transparency to monitor crypto usage by terrorist organizations, Blankfein questioned how regulators could allow crypto assets to thrive in their current form.
“If I were a regulator, I would hyperventilate a bit about the success of [Bitcoin] right now and arm myself to deal with it,” he said.
Needs to be restrained
Bosfein claims that in order to make Bitcoin compatible with the current financial and regulatory apparatus, most of the fundamental freedoms provided by BTC must be harnessed. However, he questioned whether the strong demand for Bitcoin without fake privacy features would continue to exist:
“This could be applicable. But with the freedom people love in the first place, it will hurt a lack of transparency. This is the mystery that Bitcoin will have to get rid of. ”
Blankfein also criticized Bitcoin as a store of value and highlighted the price volatility and the technological literacy required to keep BTC itself.
In August, the US Justice Department announced that it had seized millions of dollars’ worth of crypto from more than 300 wallets linked to al-Qaeda and IS.
Don Fort, head of the IRS or IRS-CI’s criminal investigation, emphasized in the statement that the institution can trace crypto to its source so that the groups can disband their financial networks.