SECOND TAKE
BLOOMBERG OPINION: Cryptocurrencies and virtual criminality
May’s security breach at Colonial Pipeline has focused attention on an issue with cryptocurrencies such as bitcoin. Their primary use as a medium of exchange, as opposed to their role as a store of value, is for payments related to crime — in this case, more than $4m in ransom to the hackers, who shut down a substantial part of the US’s fuel supply.
This is one area where a laissez-faire attitude towards technological innovation cannot apply. Dealing with money is one of the most risky and inconvenient aspects of being a criminal. Physical cash can be difficult to store, transfer or spend without attracting unwanted attention. Bank accounts are subject to anti-money laundering requirements, designed to reveal the true sources and beneficiaries of funds...
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