Lloyd Blankfein, chairman of the board of investment bank Goldman Sachs, said that regulators must urgently take action on Bitcoin, otherwise it will spiral out of control.
Blankfein is concerned about the recent success of the first cryptocurrency. The head of Goldman Sachs described bitcoin as a crypto asset "undermining" the ability of regulators to control the financial system. Bitcoin's anonymous nature makes it ideal for terrorist financing and other illegal transactions, he said.
According to Blankfein, while authorities and law enforcement are starting to use blockchain to track cryptocurrency transactions and market manipulation, regulators should not allow digital assets to “flourish” in their current form. He said:
“You don't know who you are paying: the North Koreans, the ultra-radical terrorist organization Al Qaeda, or the revolutionary leaders. If I were a regulator, I would have armed myself against bitcoin long ago. "
The head of Goldman Sachs noted that in order for Bitcoin to comply with all legal requirements, this crypto asset must be deprived of the freedom and privileges that it possesses. However, having ceased to have privacy, bitcoin will no longer be in high demand.
Blankfein also criticized Bitcoin as a store of value due to its excessive volatility. In addition, according to him, people must have technical literacy in order to independently use Bitcoin and other cryptocurrencies.
“How do you call Bitcoin a store of value if its price can fluctuate by 10% per day? If you lose a piece of paper with a key and a seed phrase, say goodbye to money forever, ”added the chairman of Goldman Sachs.
In August, the US Department of Justice confiscated more than $ 2 million worth of cryptocurrencies from 300 al-Qaeda and ISIS-linked wallets. This confiscation of digital currencies from terrorists became the largest in history. Back in 2018, Blankfein said that bitcoin could threaten ordinary money, and it is too stupid not to notice this cryptocurrency.