Now Loading

CRYPTO IS JUST THE TIP OF THE ICEBERG, EXPERTS TELL

CRYPTO IS JUST THE TIP OF THE ICEBERG, EXPERTS TELL

Non-cryptocurrency alternative payment systems pose a serious threat to the security of the United States, according to testimony presented at a Tuesday hearing of the House Financial Services Subcommittee on National Security, International Development, and Monetary Policy. The alternative payment ecosystem should be seen as a whole, and cryptocurrencies can enhance national security, speakers said.


Wilson Center member Scott Dueweke told the U.S. Financial Services Subcommittee. House in written testimony: "By focusing only on cryptocurrencies, we risk missing the forest for the trees."


Money services businesses are heavily regulated in the United States, but businesses based outside the country may not be willing to comply with US requirements, including Know Your Customer/Anti-Money Laundering, and may be outside the US and other Western countries. requirements, Dueweke said.


Dueweke recommended a greater open-source financial intelligence effort as a counter to the threat posed by alternatives to the SWIFT network created by Russia and China and other threats. He said:


“The United States must follow our private sector's global leadership in technology by setting the standard for APE on the international stage. Regardless of which direction the US government takes with the digital dollar, […] it cannot wait to engage the world through international organizations.”

While political goals inspire such moves as the creation of such projects as Russia's financial message transfer system, an alternative to SWIFT, and the country's MIR bank card system, Dueweke said poverty is a major driver in the expansion of the alternative payment ecosystem.



Dueweke said more than 700 million people lack adequate banking services, and the situation is exacerbated by the risk reduction practice of Western banks ceasing to provide correspondent services to banks in poor regions. While safety is the state's motivation for the practice, there is often a profit motive behind it, Dueweke said.


TRM Labs head of legal and government Ari Redbord said at the hearing that US dollar-backed stablecoins could strengthen US national security. Because of the prestige and reliability of American fiat currency, Redbord said:


"It is possible to imagine a world in which entrepreneurs create financial services products using US dollar-backed stablecoins, even though those products otherwise have little to do with the United States."

Source: cointelegraph



How do you feel about this blog?

0 Comments

Leave a Reply