Back to the list

Lael Brainard Says Half of the Bitcoin Transactions are Illegal

Denis Goncharenko

Lael Brainard, a member of the United States Federal Reserve Board of Governors believes that 50% of all Bitcoin transactions around the world are illegal and have criminal intent.

Brainard made her announcement during a panel speech honoring a member of the European Central Bank. The speech was a direct attack on Bitcoin’s legitimacy and painted it as a tool for criminals, rather than the revolutionary technology most crypto enthusiasts know it for.

The member of the board highlighted that nearly 25% of all Bitcoin users have criminal intent and represent half of all transactions, thus classifying the asset as a major issue for national security. Although Brainard is basing her analysis off-of something that simply cannot be tracked, there are more than enough reports that do support his speech. Things such as darknet transactions, drug trafficking, and even Wire fraud have been linked to cryptocurrencies in the past.

However, these large-scale crimes are usually combined with smaller ones which aren’t really considered serious offenses in the United States. Take for example fantasy football, which is just now starting to gain notoriety thanks to Bitcoin affiliation. Due to a couple of platforms lacking a license, almost all of the industry is considered as illegal.

Although the intent from Brainard deserves some recognition, it’s also important to note that 99% of the world’s financial crime is conducted with fiat money, especially the USD. Therefore, it’s a bit hasty to attack Bitcoin, an emerging digital asset when such a huge resource is still in jeopardy all over the world.

Image courtesy of MoonCatcherMeme

Back to the list