25. November 2020

‚The guy puts $ 200 bill on his ass imagine with Bitcoin‘, says former Central Bank president about money laundering

Former Central Bank President says Bitcoin doesn’t change anything in the financial system and that if companies don’t worry about money laundering they will be eliminated

Former Central Bank President Gustavo Franco said that what worries regulators around the world about cryptomoraks is the possibility of their use for money laundering.

Thus, according to him, in a live promoted by Exame during the „Future of Money“ event, for Franco cryptoactives are not a global financial revolution, but an interesting „study“, as well as M-Pesa in Kenya, which was born before cryptomorphs, and other initiatives in the world.

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However, beyond these „studies“ and „tests“ of a digital money that can be traded „without borders“, what concerns regulators is its use for illicit activities.

„It seems to have become a libertarian adventure to trade illegal things with payments whose transit is invisible. See, we are in an environment where the R$ 200 bill is already a problem, at last, the people put on their underwear, and we will have 1 bitcoin worth US$ 11 thousand and this is no problem for the authorities worried about money laundering, of course it is!

This way, according to Franco, if the system around the cryptoactives can’t deal with these issues, in a certain moment, it will be penalized.

„And if the crypto system is not able to deal with money laundering, I’m sorry but it won’t roll over, it will never get acceptance from the regulated world and so the thing won’t grow right it will always be in this little thing there half crooked alternative“, he highlighted.

Bitcoin wasn’t made to be sold in exchange

In addition, according to Franco, who was one of those responsible for implementing the real plan, hackers who hijack data with payments in cryptomacs don’t help regulators much either, thinking that something revolutionary is going to come out of it in the monetary system.

Franco also pointed out that the discussion about whether or not Bitcoin is currency is only an „aesthetic“ discussion and without any importance.

„The discussion about whether or not Bitcoin serves as currency is an aesthetically interesting discussion that can help us to better understand conceptually what the thing is and what the thing ends up being is different than what the creators imagined it would be and what is happening is different than what I believe they imagined,“ he said.

So, in this line, Franco highlighted that Bitcoin was not made to be a speculative instrument and neither to be traded in exchanges that end up damaging its users for lack of security.

„Another thing, exchanges are brokers, bags of something that was not made to have a broker, so many people who are being hurt in these environments both in less conventional things like embezzlement and more conventional things like hacking,“ he said.

It doesn’t matter who ’sakamoto‘ is

Laughing and in a sarcastic tone, the former president of the BC declared that for regulators it matters little who ’sakamoto‘ is, (in reference to the creator of Bitcoin, Satoshi Nakamoto) or the ideology of cypherpunks.

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Thus, according to him, just like the Woodstock festival the libertarian ideals are just an „experience“ and will not change or revolutionize anything.

„Of course it’s interesting and so, but life goes on. Woodstock will understand, the record will come out the film but it won’t transform the world (… ) There are many other things in the world of cryptomime, who is Sakamoto, where is, uhh, ok, the whole ideology, sociological study about bitcoin, saying that more interesting than Bitcoin as currency is Bitcoin as a social phenomenon, libertarian, cypherpunks, … uh, okay, for the central banks this, however, does not matter as other excesses like Dogecoin or that mature Nicolas creates a cryptomeda called Petro, in this case it is the problem of Venezuelan authorities,“ he said.