More On: Crypto
The European Central Bank's president, Christine Lagarde, addressed at the BIS summit on Tuesday. She maintained that crypto posed a threat and that Russian rubles were evading sanctions by investing in crypto and stablecoins.
Despite most authorities noting that there is little evidence to support the claim that bitcoin is being used to escape Russian sanctions, Christine Lagarde is taking advantage of the chance to continue to trash cryptocurrency, as she has done at every opportunity thus far.
Her claims that Russian rubles are pouring into crypto may be correct, but the liquidity on exchanges and in instruments like'mixers,' for a meaningful quantity of value to travel through them, just isn't there.
In a similar vein, US Senator Elizabeth Warren recently suggested that cryptocurrencies were being utilized by Russia. Her humiliating questioning of a Chainalysis specialist only served to reveal her complete lack of knowledge on the subject.
Even Michael Mosier, a deputy director at the US enforcement agency FinCEN, stated that the cryptocurrency market was too small for a country the size of Russia to use widely. He stated, "
"You can't flip a switch overnight, and run a G-20 economy on cryptocurrency,"
"It's an access problem, it's a rails problem, and it's just a basic liquidity problem. Certainly, there's going to be an element [of crypto] that's part of their playbook. But it frankly isn't at the top of the list."
Facts appear to have no effect on Lagarde. She chooses to disregard the reality that cryptocurrencies are based on blockchain technology, which enables 100% transparency of all transactions, hence offering a route to the door of any criminals who are stupid enough to utilize it. She reinforced the crypto/criminality storyline yesterday, saying:
"So is it a threat? Yes. Has it … been a threat in the past? Yes, because when you look at a lot of the dubious transactions that are taking place, a lot of the criminal activities payments that are taking place, very often you find some crypto assets,”
Instead, Lagarde proposes that Europe as a whole adopt a central bank digital currency (CBDC). This is what China is currently aiming to inflict on its inhabitants, because CBDCs will allow the central bank ultimate control over every single citizen's expenditure, resulting in absolute and utter control over their everyday life.
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