REGULATION

Rejecting the theory of illegal funding by the Federal Reserve, U.S. Congress members state: "Most crimes are carried out with your cash."

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Rejecting the theory of illegal funding by the Federal Reserve, U.S. Congress members state: "Most crimes are carried out with your cash."

Recently, Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, described cryptocurrencies as "junk coins," stating that they have no benefits other than facilitating illegal activities such as drug trafficking and prostitution. In response, U.S. Congressman Tom Emmer argued, "Most crimes are committed using the cash you print, not cryptocurrencies."

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U.S. Congressman Tom Emmer has responded to comments made by Neel Kashkari. He believes that Neel Kashkari's statement that cryptocurrency is mainly used for illegal activities is incorrect.

Tom Emmer wrote on Twitter: "In 2020, cryptocurrency-based crime accounted for only 0.34% of the total transaction volume. Unfortunately, the majority of crimes are still carried out using the cash you print."

According to a report released earlier this year by the blockchain data platform Chainalysis, the crime rate associated with cryptocurrency significantly decreased in 2020, with "the share of criminal activity for all cryptocurrency transactions falling to just 0.34% or $10 billion of transaction volume."

Despite this trend, many officials continue to claim that cryptocurrency is mainly used for illicit financing. U.S. Treasury Secretary Janet Yellen has stated, "Cryptocurrencies are a particular concern... I think many are used—at least in a transaction sense—mainly for illicit financing."

European Central Bank (ECB) President Christine Lagarde also mentioned that Bitcoin "has been used for some reprehensible money laundering activities."

In addition to Tom Emmer, many others have tried to clarify that most crimes are carried out using fiat currencies rather than cryptocurrencies. This includes renowned Spanish economist Daniel Lacalle, who emphasized that Christine Lagarde's statement is "very outlandish," adding: "We all know that the vast majority of money laundering activities globally are conducted using fiat currencies, especially the U.S. dollar and the euro."

This article is authorized for reposting from Horizon News Network