US Treasury Secretary Mnuchin: Bitcoin is not a Swiss bank account

In his latest interview to one of the most respected financial media outlets, Steven Mnuchin, United States Treasury Secretary, tells that Bitcoin is not exactly as secure as a Swiss bank account, and people who invest in it might get hurt.

“We are very focused on cyber currencies or cryptocurrencies. We’ve set up a working group, we’re working with all regulators [on this].”

Steven Mnuchin further explained that as a leader of one of the most influential financial organizations of the world, he has two issues with Bitcoin: first, bad people should not use Bitcoin for criminal purposes. He told that American-based exchanges and wallet services must obey the laws designed for banks (namely, the KYC principle). He even announced that at G20, he and his colleagues will make sure that Bitcoin does not become the second instance of Swiss bank accounts. To understand this sentence, it’s useful to remember the stereotype in which Swiss banks are 100% secure and make deals with shady customers.

And second, there is a lot of speculation in this sphere, so some people might lose money, told Mr Mnuchin. When asked about the Russian cryptoruble as a means to evade sanctions, he told this isn’t the cause for concern, as digital, central bank-issued cryptocurrencies are different from Bitcoin, and because the Federal Reserve has already looked into the issue of “cryptodollar” and decided there is no reason for its immediate implementation.