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US Secretary of State, Mike Pompeo, has strengthened calls for cryptocurrency regulations. In an interview with CNBC, the Secretary of State gave answers suggesting that cryptocurrencies are a threat to national and global security. These recent calls for crypto regulations come just a few months after Facebook announced Project Libra.

Anonymous Transactions

Mike Pompeo, in his responses, was against the success of anonymous transactions. He stated concerning anonymous transactions, “…It will decrease the security for the world if that’s the direction we travel.” The secretary of the state referenced the 9/11 terror attacks claiming that a similar attack may be funded using anonymous transactions.

“…We need to preserve a financial system, a global financial system, that protects that.”

This was Mike Pompeo’s closing statement on anonymous transactions referring to a financial system that traces all transactions carried out.

His statement echoes Donald Trump’s earlier tweets, in whcih he delcared that he was not a fan of cryptocurrencies:

I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity…. — Donald J. Trump (@realDonaldTrump) July 12, 2019

Imperfect Systems

Ever since Project Libra was announced, calls for regulation of the cryptocurrency industry have been intensified with members of congress even suggesting that Facebook should stop the development of the project.

The hard stance by governments may not be protective as governments usually want to have a strong control in most aspects of life. Governments thrive when they control most operations in the country; thus, cryptocurrencies are viewed as a security threat.

However, no system is perfect. The flaws in financial systems led to the development of cryptocurrencies such as Bitcoin. Their success is a revelation of the need for a proper financial system that covers most loopholes.

Terrorist groups were receiving funding even before cryptocurrencies were introduced. Preventing the development of anonymous transactions will not stop terrorism.

Featured Image Source: Hindustan Times