Banking Insider To Governments: You Should Want Bitcoin To Be Way More Private
According to this banking insider, the government was completely wrong. Bitcoin is one of the least private assets and they should change their policy to swing the pendulum in the other direction. In the eyes of banking insiders, instead of protecting them, the government is hurting their citizens with the current draconian measures. Sure, this sounds convenient to Bitcoiners, but this banking insider seems to be the real deal.
He or she wrote on condition of anonymity An article by the Bitcoin Policy Institute. It begins with, “Financial privacy—more specifically, the requirement to obtain informed consent before collecting and using others’ personal financial information—is the foundation of personal freedom.” From there, it goes to Mordor and back . Do banking insiders know anything about it? Or are banking insiders just following Bitcoin’s party line? Let’s check what she or he said and find out.
But first, we shouldn’t separate this paragraph from the opening line. It accompanies and complements them.
“Due to the twin threats of exponential growth in cybercrime and increased government oversight and scrutiny of financial transactions, personal financial privacy is and has been under attack on multiple fronts, and the real costs are starting to show in clear ways.”
This is a very important topic, and the world should discuss it thoroughly as soon as possible. This banking insider helps the government by explaining to the government how privacy works in Bitcoin. The article also reads like a pre-emptive strike against possible Tornado Cash-like sanctions on the Bitcoin network.
About the Author/Banking Insider
Normally, we don’t disrupt the flow of an article with author information, but this time it’s important. If readers don’t believe Banking Insider, they won’t take his words of wisdom seriously. This guy knows what’s going on.
“The authors have chosen to remain anonymous to protect their identities and the companies for which they work. They have worked in the area of fraud prevention and mitigation at multiple listed financial institutions; from grassroots tactics to corporate strategy and policy.”
They also work on “authentication” and are involved in “compliance and reporting” for KYC and AML. The banking insider currently works for a bank helping them “prevent fraud and comply with existing regulatory guidelines regarding customer identities”. Their warnings to governments and citizens are as chilling as they need to be.
“As someone who has watched identity theft upend the lives of countless victims, I know how important financial privacy is to protecting consumers from scammers and the criminal networks that have proliferated over the past 15 years. Global fraud losses are estimated to be equivalent to the equivalent of global GDP. 6.4%, and will reach a staggering $5.38 trillion by 2021. Experts point out that protecting and securing personal financial information is one of the most important actions people can take to mitigate these threats.
And because we give due credit, the Bitcoin Policy Institute define yourself As “a nonpartisan, nonprofit organization that studies the policy and social implications of Bitcoin and emerging currency networks.”
BTC price chart for 09/22/2022 on FX | Source: BTC/USD on TradingView.com
Banking Insider Talks Privacy
According to banking insiders, “Cash offers the highest level of privacy.” Second, we have credit card companies or banks, in other words, “a third party that conducts transactions on our behalf.” Using these, there is a “relatively high level of privacy” as these companies “have a legal obligation not to disclose our transaction information to others without our consent”.
You know who came in third, “because Bitcoin is an open public ledger and everyone can expose users’ transaction history.” The transparency of the Bitcoin network means “anyone can see the past with this wallet All transactions related to the asset in the address – and in many cases, how many bitcoins are in the wallet!”
This leads us to prevention. Just in case lawmakers are considering a Tornado Cash-like attack on Bitcoin:
“Bitcoin users who do not want to share their entire transaction history or net worth when transacting with merchants can use collaborative transaction tools to compare their financial privacy to other payment methods. These tools provide services similar to what Visa currently offers its users ; they mask transaction details from both counterparties and outside observers.”
Not only is collaborative trading not a crime. They are absolutely necessary for the system to provide privacy.
“These collaborative transaction tools present clear benefits to end users, but are viewed with skepticism by policymakers and financial institutions supporting cryptocurrency transactions and services, as these tools are conceptually safe for criminals who want to ‘break the chain’ also attractive” to understand their funding sources. “
in conclusion
In the end, the banking insider simply said that Bitcoin users should “enjoy the same level of financial privacy that Americans legally enjoy in their day-to-day transactions — no matter how those people choose to pay or be paid.” And the system is different enough , worthy of a new set of rules. And it’s no small thing.
“As Bitcoin users grow through regulated exchanges, lawmakers must ensure that their financial privacy is as protected as all other regulated payment channels. If this problem is not addressed soon, the global threat posed by fraud today will only accelerate.”
Keep in mind that “experts believe that protecting and securing personal financial information is one of the most important steps people can take to mitigate” privacy threats.
Featured Image by Jason Dent on Unsplash | Charts by TradingView
