US Secretary of State Pompeo said that the cryptocurrency "anonymous transaction" constitutes a major national security risk, and the encryption community directly slammed back


US Secretary Donald Trump’s Secretary of State, Mike Pompeo, cited 9/11 to explain the seriousness of Bitcoin’s threat to national security. |Source: Associated Press Pictures

Trump government secretary of state Mike Pompeo said in an interview on Tuesday morning that cryptocurrency regulation said he did not want to open a "viral moment." However, at least one of his remarks may trigger a response from Bitcoin investors.


Mike Pompeo: "Anonymous" Bitcoin poses a threat to national security

President Trump's second secretary of state, Pompeo, said that the so-called "anonymous transactions" associated with cryptocurrencies (almost all wrong) pose a significant risk to US national security.

To clarify his point of view, he cited the 9/11 terrorist attacks.

“Look, the risks of anonymous trading are very clear. We know this from the 9/11 incident and the terrorist activities that occurred in the previous 15 years. We didn’t track well at the time. We didn’t have the ability to understand the flow of funds and who was transferring. funds."

“We need to maintain a financial system,” he added. “A global financial system.”

Pompeo cautiously avoided using popular vocabulary – he didn't even mention bitcoin or cryptocurrency directly – but the point is clear: the authorities must be able to track bitcoin payments as easily as tracking other financial transactions. Otherwise, Bitcoin may only fund the next 9/11 event.

9/11 is funded by US dollar bills

Cash, not cryptocurrency, is still a big part of terrorist financing.

According to a report by the Center for a New American Security,

“The 9/11 attackers made extensive use of US banks. The hijackers opened accounts in their own names and made small transactions, which were hidden by billions of dollars flowing through the formal financial sector.”

However, the idea that cryptocurrencies will fund the next major terrorist attack continues to be supported by regulators and is not entirely worthless.

Earlier this week, the New York Times published a report saying that Hamas and other terrorist organizations have begun to interest Bitcoin as a tool for financing their illegal activities and restricting government tracking of funding sources. ability.

Gabor Gurbacs, head of cryptocurrency at BitEco fund provider VanEck, refuted Secretary of State Pompeo's claim that Bitcoin "has the potential to enhance the security of the US and the world's financial and payment infrastructure."

His solution? It is the Bitcoin ETF (VanEck has been applying for Bitcoin ETF).


Finally, bitcoin is not anonymous

In any case, the idea that "bitcoin is anonymous" is still the biggest misunderstanding of many of these leading cryptocurrencies.

Encrypted money fund Morgan Creek founder Pomp replied:

"Bitcoin is not anonymous, it is a pseudonym. This difference is very important."


Twitter users also said:

“Because bitcoin is not anonymous, many criminals have been brought to justice. If you send someone a bitcoin, it will be permanently recorded. For the FBI, in many cases, many exchanges are With KYC, it is not difficult to determine the owner of the wallet. Cash is safer for criminals."

Just as you can post tweets under a pseudonym, BTC's address doesn't clearly show your real name, but law enforcement agencies can often use external tools to expose the identity of criminals who use Bitcoin.

For example, if your address has ever sent or received illegal funds from a cryptocurrency exchange that complies with KYC rules, the authorities will soon check the water meter.