US Treasury Secretary Steven Mnuchin made several statements regarding the international use of digital currencies at a meeting of the Economic Club of Washington on Friday.
The Secretary expressed concern that Bitcoin portfolios could potentially become the modern equivalent of the anonymous bank account in Switzerland. It intends to work with the G20 countries to provide tracking capabilities in the US to prevent such misuse. He said:
“If you have a portfolio to own Bitcoins, this company has the same obligation as a bank to know you, we can follow these activities, the rest of the world does not have that, so one of the things we’re going to do is to work very closely with the G-20 is to make sure that it does not become the Swiss bank account. ”
Mnuchin does not seem to understand that not all portfolios are hosted by “companies”.
The experts in the cryptocurrency industry, however, are not so excited about the idea of more regulations. For example, Sergei Sevriugin, CEO and founder of the REGA risk sharing platform, told Cointelegraph:
“I think the regulation already exists for cryptocurrency, but the regulation by the community and not by the central authorities, which is the best kind of regulation that can exist.The centralized regulation will kill the idea of crypto currency; without any control from the community, this type of settlement will cause a number of problems, including corruption, and we can all remember that the last crisis, including the collapse of the mortgage system in 2008, was under total control and regulation To put cryptocurrency under full control, authorities must first control the Internet. ”
Mnuchin also discussed the potential for countries to use digital currencies to circumvent existing financial sanctions. He expressed the belief that there is little risk of such activities, saying that he is “not at all” worried that countries like Russia and Venezuela could function in this way.