Disclaimer
The intention of this post is not to come across as condescending or dismissive towards @badbitch post (the link is attached at the end of this article) nor is it meant to cast a negative light on blockchain/cryptocurrency. On the contrary, it aims to do the opposite.
According to reports, the top wealthiest 1% now own 63% of new global wealth. Taking into consideration this imbalanced distribution of wealth, it is safe to assume that over half, or at least some of the wealth owned by the richest 1% wasn't acquired through ideal ethical means. And why is the piece of information important? Well if my assumption is in the least of ways true, then it is quite understandable why there might be a push for an alternative way of receiving, saving, transferring and preserving said wealth - a revolution of sorts.
This is because organizations such as the Internal Revenue Service (IRS) in the United States are in a constant and relentless pursuit for tax evaders and individuals involved in money laundering – As well as those who transfer or spend large amounts of money that aren't coming from an evident source. I think it's quite agreeable if I say the vast majority of people that facilitated the inventory and growth of the blockchain industry are the richest 1%, as what else could really drive anyone to look for an alternative means of storing wealth – particularly one that is unregulated and decentralized, one that you have complete control of your money, regardless of its source?
The anonymity of crypto transactions is a huge myth, sure, if I move $100 here and there, nobody is going to care because that's too small a cash for anyone to give a damn, but say I attempt to move over $400 million…
– @badbitch
The processes money is being laundered are intricate and prudent and are mostly employed by organized crimes for a reason. Attempting to launder money by transferring $400 million worth of cryptocurrency from one wallet to another, whether in full or in bits would be highly improbable and counterproductive to the very concept of money laundering. As that is like moving $400 million worth of cash through multiple banks. While cryptocurrencies are stored solely on a blockchain and not under any central authority, they function similarly to banks in terms of their usage and purpose.
And personally I would prefer moving $400 million via banks as it provides some level of confidentiality, and only the banks involved would have knowledge of the transaction amount. But cryptocurrency won't allow for such discretion because moving $400 million through cryptocurrency means I'm comfortable with the idea that anyone at all can access data concerning the exact amount that my wallet address transferred – anyone at all, leaving no room for privacy or discretion.
And honestly it'll be less challenging explaining to revenue organizations and tax agencies how I got $400 million in possession than it would be to thwart cyber attacks from the world's most proficient cyber thieves. So yeah, transferring $400 million in cryptocurrency isn't smart nor is it organized and it does not align with the standard practice of money laundering. I would know because, my great grandfather happens to be Al Capone.
Just kidding, I recently binged watched OZARK on Netflix. (Really wish my great grandfather was Al Capone though. And by the way, I highly recommend OZARK)
So How Would It Work?
A front. Yeah that's right. Smokes and Mirrors if you will. That being said, what are the chances that HIVE blockchain isn't designed to facilitate money laundering for drug lords in panama? (I'm sorry, I just watched too much of OZARK) But yeah, that's exactly what the potential approach would be, by funding and investing in multiple cryptocurrency projects and DeFi services and overtime they'll get their ROI in clean and legitimate money. And trust me, money launderers are some real patient mofos, they'll certainly not hesitate to spend a year cleaning $400 million.
Also, take into consideration initial coin offerings (ICO). I mean it's quite an acknowledged fact that many of the biggest companies and organizations in the corporate world still lacks confidence in cryptocurrency. This raises the question: where are blockchain/DeFi projects sourcing their funding? Ever stopped to wonder? Exactly. The truth is no one is likely to move $400 million in cryptocurrency around, at least not in the way it's commonly assumed it'll be moved – from one wallet to another wallet. Instead, such amount of money may likely be utilized to fund a project such as like HIVE. (Again, too much of OZARK)
Is this a sufficient reason to support the worldwide eradication of cryptocurrency?
Of course not! In my opinion, cryptocurrency isn't experiencing resistance from the corporate world because it is being used to launder money as some may assume, far from that! Rather the only possible reason cryptocurrency isn't fully adopted yet is because it poses a threat to a system that has been in place for millennials – The traditional banking fucking longstanding system! A system that has been the foundation of the global economy for centuries. Money laundering is just one of the loose threads they're pulling on. The primary concern is that cryptocurrency eliminates the need for a middleman, a mediator, an intermediary and a regulatory board therefore conferring all power to it's holders.This lack of centralized control is precisely why there is such a strong push to slow down the development and widespread adoption of cryptocurrency.
What Can We Do Then?
The first step is to admit the flaws, the shortcomings. Yeah, blockchain can facilitate money laundering and that is a fact, but it's important to note that money laundering has existed long before the invention of blockchain technology and will likely continue to exist. The best course of action to take is to acknowledge these loose threads and then look for ways to cut them off the fabric without affecting the fabric's original state. Every system, technology and inventory ever made by man has inherent flaws and weaknesses but they're not corrected by ignoring them, they're corrected by admitting them and ultimately implementing innovations that'll mitigate or completely eliminate them. While cryptocurrency can be used for money laundering, it can also be used to combat money laundering. The key is to mitigate or eliminate the former possiblity through constant innovation and development.
Link To @badbitch Post:
https://leofinance.io/@badbitch/blockchain-will-be-an-essential-tool-in-fighting-money-laundering
Don't forget to leave a comment below!
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