Federal Reserve Board Member Attacks Cryptocurrencies

Federal Reserve Board Governor Lael Brainard

In remarks delivered Wednesday in Frankfurt Germany, Lael Brainard, a member of the Federal Reserve Board of Governors, highlighted the perceived risks of cryptocurrencies, according to the Cointelegrapgh.

She made the remarks as part of a panel honoring Benoît Coeuré, a member of the executive board of the European Central Bank.

Specifically, she said that “Only a third of the most popular exchanges require ID verification and proof of address to make a deposit or withdrawal. This is troubling, since a number of studies conclude that cryptocurrencies support a significant amount of illicit activity."

She then added that “One study estimated that more than a quarter of bitcoin users and roughly half of bitcoin transactions, for example, are associated with illegal activity.”

The last thing Bitcoin and other cryptocurrency operators want is more government focus on their activities. But it will come.

The idea that cryptocurrencies will somehow fly underneath the radar of government authorities is delusional. Extensive regulation of cryptocurrencies has occurred and more will come.

-RW