Are Terrorists Really Using Crypto?
Recent reports, including one from the Wall Street Journal, claim that terrorist organizations like Hamaz and Hezbollah are using cryptocurrency for funding. However, this ongoing attempt by the mainstream media to associate crypto with money laundering and terrorism is becoming ridiculous.
While it’s true that there may be some instances of crypto being used in such activities, it pales in comparison to the use of traditional currencies like the dollar. The Wall Street Journal article states that Hamaz used $41 million in crypto, while Palestinian Islamic Jihad used $91 million.
Comparing this to a drug dealer buying drugs with U.S. dollars and condemning the entire currency is unfair. It seems like mainstream media is trying to tarnish the reputation of crypto by throwing mud at it, hoping something will stick and justifying heavier regulations.
The Real Reason Behind the Smear Campaign
The constant negativity surrounding crypto stems from governments’ fear of private money. If people start protesting against currency debasement by turning to cryptocurrencies like bitcoin, it could lead to the collapse of the banking system.
Last year in Canada, authorities went to extreme lengths to prevent citizens from donating money by raiding their homes and demanding access to their crypto wallets. This highlights the government’s desperation to maintain control over financial transactions.
Terrorist Funding Predominantly Happens Through Traditional Banking
Chris Skinner, an expert on digital finance, argues that reports blaming decentralized currencies for terrorist funding overlook the fact that most funding actually occurs through traditional banking systems via nested accounts and money laundering.
“Smearing all decentralized or alternative currencies as bad while praising governments and banks is a simplistic approach. It fails to recognize that terrorist funding primarily relies on traditional banking methods, which despite government efforts, is still rampant.”
Skinner believes that politicians using crypto as a scapegoat for this issue could be seen as fraudulent. It’s essential to acknowledge that crypto plays a small role in terrorist funding compared to other financial assets.
Hot Take: Crypto’s Unfair Reputation
The mainstream media’s continuous attempt to associate crypto with illicit activities like terrorism and money laundering is unjustified. While there may be isolated incidents, the overall scale of such activities involving cryptocurrencies is minimal compared to traditional banking systems.
This smear campaign against crypto reflects governments’ fear of losing control over private money. It’s crucial to recognize that most terrorist funding happens through traditional channels, and blaming crypto for this issue is misleading. It’s time to dispel these misconceptions and give cryptocurrencies a fair evaluation based on facts rather than unfounded fears.
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