There has been a lot of discussion about the privacy assured by cryptocurrency. A very hot topic, which in the past has prompted some prominent names in traditional finance to attack in particular Bitcoin, pointing it to public opinion as a real laundry of dirty money.
A judgment enunciated by Davide Serra, founder of Algebris, against which many opposing voices have risen. But that not infrequently has returned to echo every time BTC has been accused of being the ideal tool for the markets that characterize the Dark Web. That is the hidden part of the Internet where people trade in drugs, weapons and human beings.
Privacy coin: a very controversial reputation
Over the past few years, however, Bitcoin has been partially relieved of suspicion. Which have begun to pinpoint the so-called privacy coin. A category in which they stand out Monero, Dash, Zcash e Grin, or cryptocurrencies that promise very high levels of confidentiality. Driven almost to anonymity, so much so as to alarm the authorities in contrast to the phenomenon of tax evasion and the police forces.
Monero, in particular, has come under attack in the United States and Russia over the past few months. In the first case it was theIRS (Internal Revenue Service) to take action, promising a bounty of 625 thousand dollars to anyone able to violate their privacy. While in Russia it was the Federal Financial Monitoring Service to commit to this. In particular, giving life to an instrument capable of tracing XMR. Of which, however, little is still known.
The Perkins Coie study appears to disprove the assumption
Are privacy coins dangerous, as they allow levels of confidentiality that can help the criminal economy? It wouldn't be quite like that, second Perkins Coie.
The international law firm based in the United States, in fact, has published a document according to which the contrast measures already active and known as AML (Anti Money Laundering) would be enough to target any money laundering attempts. Recalling at the same time that activities on darknet markets see the dominant use of Bitcoin. Monero, Grin, Zcash and DashTaken together, they would be used in just 0,3% of the activities in question.
The advantages of privacy coins outweigh the problems associated with them
After having brought the data to support his thesis, Perkins Coie's paper also goes as far as to remember i benefits of privacy coins. Which would be able to provide a series of public benefits which substantially exceed the reported risks.
Risks that would be easily mitigated by existing anti-money laundering regulations. Which are capable of creating a framework for combating money laundering and related crime that is more than sufficient.
Precisely for this reason, therefore, the law firm promotes this particular type of cryptocurrency. Also affirming that they practically serve as proof of the transition. Unlike cash and card payments.
So much so that more than 90% of money laundering is not detected, as unencrypted forms of payment can bypass borders without the transaction being recorded on blockchain.