Those who don’t understand crypto or are against it without any reason have always associated it with illegal activities. Even though reports and data show that the illegal activities happening in crypto are just a tiny portion of the total volume, many still defame it. But now, even the US Treasury has clarified that fiat is still the primary choice for financial crimes.
US Treasury clears the air around cryptocurrencies
With the Executive Order from Biden, it seems that the US authorities (especially the Treasury) have been talking favorably about crypto. Recently, the department has cleared the air around crypto being a primary tool for criminal activities. They said that fiat is still the primary money being used for the bulk of financial crimes.
If you compare year on year, the growth of the crypto market also means that the volume of illegal activities in space has also increased. In fact, it has doubled from nearly $7 billion to $14 billion from 2020 to 2021, suggested a Chainalysis report. But the fraction that these illegal activities represented in the total volume has become 1/4th from 0.62% to 0.15%. And when we bring fiat currencies to the picture, they outnumber crypto by quite a lot.
In the recent report, the US Treasury clarified that “The use of crypto assets for money laundering continues to be significantly less prevalent than the use of fiat cash and other more traditional means.”
Decentralization is the main problem in the crypto
While investors love crypto because of its decentralized nature, it is one of the main reasons that it’s used for illegal activities. Money Laundering using cryptocurrencies is a big concern among authorities. Plus, the use of crypto to ask ransoms is also another thing. Since transactions are irreversible in the crypto space, they are used as an advantage by criminals. Money Laundering costs the US anywhere between $800 billion to $2 trillion every year, and the worst part is 90% of it is undetected. Therefore, it would be unreasonable to put the entire blame on crypto once again.
What are your thoughts as the US Treasury says that fiat is still the primary choice for financial crimes? And do you think this will stop people from defaming crypto without any reason? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.