Banks, Stablecoins, and the FinCen Files
re-publicationTwo events made headlines on September 21, 2020. Few outside of the crypto community will likely see a correlation. If you are not familiar with some of the motivations behind the first blockchain, Bitcoin, then I encourage you to examine the bank bailouts of 2008-9.
FAILING OUT
When the banks were bailed out, they took responsibility for government money. How they operated after their bailouts needed to be superior to that of their prior activity. Maintained integrity has to be a priority. If reform was achieved on a human-professional level, then, at the very least, taxpayer dollars would be going toward building a better system.
FINCEN FILES
When the FinCEN Files made headlines on Monday, it became clear that the biggest banks were not only failing in their mission, but many professionals were outright disregarding any sort of a fair market.
The story was broken by BuzzFeed News. The news agency and its partners mined and mapped over 200,000 transactions. The value of the transactions contained within these suspicious activity reports (SARs) was calculated by BuzzFeed to exceed $2 trillion over the course of 1999 to 2017. BuzzFeed makes it clear that any of these SARs transactions could have been blocked. Instead, these banks chose to take their fees.
BACKED BY TAX DOLLARS?
A cash&grab system is not an economy. It’s more comparable to a free-for-all where looting becomes prevalent during a catastrophic event. Doing this with taxpayer money is unthinkable in high-order economics.
Essentially, when taxpayer money supports an organization that facilitates money laundering for enemies of a state, it represents something worse than illicit participation. It turns an economic system into a gamified venture against its fundamental ideals.
THIS IS WHY CRYPTO
The other news that occurred on Monday the 21st involved the U.S. Office of the Comptroller of the Currency. The U.S. bureau concluded that national banks should be allowed to hold stablecoins for their customers. It’s been deemed a type of valid bank service. Such services that occur on blockchain just might go a long way toward combating money laundering which involves tax dollars.
Note that private cryptocurrency transactions are important. However, excessively large sums of unknown transactions that’s financed by government money is dangerous, to say the least.
A link to my original publication on Voice. *
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