The Blockchain VS The U.S. Government and Its Severe Love of The Crypto
28 March 2023 | Imran Siddiqui | Justice News | Washington D.C.
Cryptocurrency and Julian Assange have one thing in common - they both are extremely hated by the U.S. government - they represent Decentralization, for them, Cryptocurrency is the WikiLeaks of Money. But, they don't know what to do with them, as they hoard the biggest stash of Bitcoin and secretly prepare to launch their own Central digital currency. But critics argue that at its core it is the United States government that is VS the Blockchain because it has disrupted their global financial hegemony.
What is The Blockchain?
Blockchain is a digital ledger technology that allows for the secure and transparent recording of transactions. It was first introduced in 2008 as the underlying technology behind the cryptocurrency Bitcoin but has since been adopted in various other industries and applications.
A blockchain consists of a network of computers or nodes that work together to verify and record transactions. Each block in the chain contains a record of several transactions, as well as a unique code, called a hash, that identifies the block and all of its contents. Once a block has been added to the chain, it cannot be altered or deleted, making the blockchain an immutable and secure record of all transactions.
One of the key features of blockchain technology is its decentralized nature. Rather than being controlled by a central authority, such as a bank or government, the blockchain is distributed across a network of nodes. Each node has a copy of the entire blockchain, and transactions are validated and verified by the network, rather than by a single entity.
Very cool stuff.
Blockchain technology has many potential applications beyond cryptocurrencies, such as supply chain management, voting systems, and identity verification. By providing a secure, transparent, and decentralized record of transactions, blockchain has the potential to and has already disrupted traditional industries and created new opportunities for businesses and individuals alike.
There are also challenges to implementing blockchain technology, including the need for significant computing power and energy consumption, as well as concerns around privacy and security. As the technology continues to evolve and mature, it will be important to address these challenges in order to fully realize the potential of blockchain.
In such a scenario, the initial use of nuclear weapons could be justified as a way to deter the other side from further aggression or to gain a strategic advantage. Regardless, the consequences of even a limited nuclear exchange would be catastrophic.
What is Cryptocurrency?.
A cryptocurrency is a digital or virtual currency that uses cryptography for security and operates independently of a central bank. Cryptocurrencies are decentralized, meaning that they are not controlled by any government or financial institution.
The most well-known cryptocurrency is Bitcoin, which was created in 2009 by an unknown person or group using the pseudonym Satoshi Nakamoto. Since then, thousands of other cryptocurrencies have been created, each with its own unique features and characteristics.
Cryptocurrencies are based on blockchain technology.
One of the key features of cryptocurrencies is that they are typically deflationary, meaning that the supply of the currency is limited and controlled by a set of rules built into the software. This is in contrast to traditional fiat currencies, which are subject to inflation and are controlled by central banks.
Crypto can be used for a variety of purposes, including as a means of payment for goods and services, as a store of value, and as a speculative investment. However, they are also known for their high volatility and can be risky investments.
Cryptocurrencies represent a new and innovative approach to money and finance, with the potential to disrupt traditional financial systems and create new opportunities for users. But in my choice, no currency is for real unless it is backed by either gold or silver or both.
Cryptocurrencies today in 2023
Cryptocurrencies have gained immense popularity in recent years, with Bitcoin being the most well-known of them all. However, the rise of cryptocurrencies has also led to concerns about their potential use in illegal activities such as money laundering and terrorism financing. In response to these concerns, the U.S. government has been cracking down on cryptocurrencies.
One of the main reasons behind the government's crackdown on cryptocurrencies is their potential use in illegal activities. Cryptocurrencies offer a level of anonymity and decentralization that makes them attractive to criminals. They can be used to move large sums of money across borders without detection, making them ideal for money laundering. The U.S. government is particularly concerned about the use of cryptocurrencies by terrorist organizations to fund their activities.
The U.S. government has also expressed concerns about the potential for cryptocurrencies to disrupt the traditional financial system. Cryptocurrencies are not subject to the same regulations as traditional financial institutions, which could make them attractive to people who are looking to evade the law or avoid paying taxes.
One example of the U.S. government cracking down on cryptocurrencies is the recent indictment of four individuals associated with the cryptocurrency exchange BitMEX. The US government alleges that BitMEX violated anti-money laundering and know-your-customer regulations and that the exchange facilitated illicit transactions. The indictment is a clear signal that the U.S. government is serious about enforcing regulations on cryptocurrencies
Another example of the U.S. government cracking down on cryptocurrencies is the recent seizure of over $1 billion in Bitcoin by the Department of Justice. The Bitcoin was seized from an individual who was allegedly involved in the Silk Road, a notorious online black market. The seizure of such a large amount of Bitcoin demonstrates the U.S. government's determination to crack down on illegal activities involving cryptocurrencies, a recent example of which was the collapse of one of the biggest digital exchanges FTX.
In addition to these high-profile cases, the U.S. government has also taken steps to regulate the cryptocurrency industry more broadly. In December 2020, the Treasury Department proposed a new rule that would require cryptocurrency exchanges to collect and report information on their customers. The rule is designed to help prevent money laundering and other illegal activities involving cryptocurrencies.
The U.S. government's crackdown on cryptocurrencies is driven by concerns about their potential use in illegal activities and their potential to disrupt the traditional financial system, at least that’s what they say. The government has taken a number of steps to enforce regulations on cryptocurrencies, including indictments and seizures of cryptocurrency assets. These actions send a clear message that the US government is serious about regulating cryptocurrencies and preventing their use in illegal activities, or as some would argue, is simply not inclined to accept the whole concept of decentralization.
Which cryptocurrencies and digital exchanges are under U.S. government scrutiny?
There are several cryptocurrencies and digital exchanges that are under the U.S. government's scrutiny. Some of the most notable examples include:
Bitcoin (BTC): Bitcoin is the most well-known cryptocurrency and is often associated with illegal activities due to its high level of anonymity. The U.S. government has been monitoring Bitcoin closely and has taken several actions to crack down on illegal activities involving cryptocurrency and also holds most amount of Bitcoin.
Ethereum (ETH): Ethereum is another popular cryptocurrency that has come under the U.S. government's scrutiny. In 2018, the Securities and Exchange Commission (SEC) declared that some tokens issued on the Ethereum network could be considered securities, which means they are subject to regulations.
Ripple (XRP): Ripple is a cryptocurrency that is used for cross-border payments. However, the SEC has filed a lawsuit against Ripple Labs, the company behind Ripple, alleging that the company violated securities laws by selling XRP tokens without proper registration.
Binance: Binance is one of the largest cryptocurrency exchanges in the world, but it has come under the U.S. government's scrutiny due to concerns about its compliance with anti-money laundering regulations. In 2021, the Commodity Futures Trading Commission (CFTC) launched an investigation into Binance's derivatives trading platform. Lately, Binance and its CEO have been sued by the U.S.
BitMEX: BitMEX is another cryptocurrency exchange that has come under the U.S. government's scrutiny. In 2020, the Department of Justice (DOJ) charged several executives at BitMEX with violating anti-money laundering regulations and facilitating illegal transactions.
Tether (USDT): Tether is a stablecoin that is pegged to the U.S. dollar. However, there have been concerns about whether Tether has enough reserves to back up the tokens it has issued. In 2021, Tether reached a settlement with the New York Attorney General's office over allegations that it misrepresented the degree to which USDT was backed by reserves.
The U.S. government is monitoring several cryptocurrencies and digital exchanges closely, and they say their focus is on preventing illegal activities such as money laundering and terrorist financing. Bitcoin, Ethereum, Ripple, Binance, BitMEX, and Tether are among the most notable examples of cryptocurrencies and digital exchanges that have come under the U.S. government's scrutiny in recent years.
What has been the response from cryptocurrencies and digital exchanges to the U.S. government crackdown on cryptocurrencies?
The response from cryptocurrencies and digital exchanges to the U.S. government crackdown on cryptocurrencies has been jumbled. While some companies have been working to comply with regulations, others have been more resistant to government oversight. Here are a few examples:
Coinbase: Coinbase is one of the largest cryptocurrency exchanges in the world and has been working to comply with U.S. regulations. In 2020, Coinbase became the first cryptocurrency company to be listed on a major U.S. stock exchange. The company has also been working with regulators to ensure that its platform is compliant with anti-money laundering and know-your-customer regulations.
Binance: Binance, on the other hand, has been more resistant to government oversight. The company is based in Malta but has faced regulatory pressure in several countries. In 2021, the UK's Financial Conduct Authority (FCA) ordered Binance to stop offering services in the UK. Binance is also facing regulatory pressure in Japan and the US.
BitPay: BitPay is a payment processor that enables merchants to accept Bitcoin and other cryptocurrencies as payment. The company has been working to comply with U.S. regulations and obtained a BitLicense from the New York Department of Financial Services in 2018.
Kraken: Kraken is a cryptocurrency exchange that has been working to comply with U.S. regulations. In 2019, the company acquired a regulated futures trading platform and has been working to ensure that its platform is compliant with anti-money laundering and know-your-customer regulations.
Gemini: Gemini is a cryptocurrency exchange founded by the Winklevoss twins. The company has been working to comply with U.S. regulations and obtained a BitLicense from the New York Department of Financial Services in 2015. The company has also been working to establish itself as a trusted custodian of cryptocurrency assets.
The response from cryptocurrencies and digital exchanges to the U.S. government crackdown on cryptocurrencies has been mixed. Some companies, such as Coinbase and Gemini, have been working to comply with U.S. regulations, while others, such as Binance, have been more resistant to government oversight. Overall, it is clear that the U.S. government's crackdown on cryptocurrencies has had a significant impact on the industry, with many companies working to establish themselves as compliant and trustworthy operators.
What seems to be the future of cryptocurrencies considering that the U.S. government is not favorable toward cryptocurrencies?
The future of cryptocurrencies is uncertain, and it is difficult to predict what impact the U.S. government's stance on cryptocurrencies will have on the industry in the long term. However, there are a few possible scenarios:
Increased regulation: It is likely that the U.S. government will continue to crack down on illegal activities involving cryptocurrencies and digital exchanges. This could lead to increased regulation of the industry, which could make it more difficult for some companies to operate.
Innovation: Despite the regulatory challenges facing the industry, cryptocurrencies and blockchain technology are still in the early stages of development. There is a lot of potential for innovation and new use cases that could drive growth in the industry.
Digital currencies: Some experts acknowledge that governments around the world will eventually issue their own digital currencies. This could create competition for existing cryptocurrencies and potentially lead to their decline in popularity.
Volatility: Cryptocurrencies are not backed by anything tangible yet, and they have been known for their high volatility, which can make them a risky investment. This volatility could continue to be a factor in the future, making cryptocurrencies a more niche asset class.
The future of cryptocurrencies is uncertain, and it will depend on a variety of factors, including government regulation, innovation, and market volatility. While the U.S. government's stance on cryptocurrencies may create challenges for the industry, there is still a lot of potential for growth and innovation in the coming years.
What are the plans of the U.S. government to launch its own cryptocurrency?
There have been discussions about the possibility of a digital dollar, a CBDC Central Bank Digital Currency, which could be a digital version of the U.S. dollar. The Federal Reserve, which is the central bank of the United States, has been studying the potential benefits and risks of a digital dollar and has conducted a number of research projects and pilots to explore the idea.
Their main goal of a digital dollar would be to increase the efficiency and security of the U.S. payment system, but there are many around the world who would disagree with this approach. But for the U.S. a digital dollar could potentially make payments faster, cheaper, and more secure, and could provide greater financial access for underserved communities.
However, there are also concerns about the potential risks of a digital dollar, including the risk of cyber attacks and the potential for increased surveillance and control by the government. There are also questions about the impact that a digital dollar could have on the existing financial system, including the potential for disruption to the banking industry.
Why is the U.S. government planning to launch its own digital currency when they are cracking down on cryptocurrencies?
With no clear overt plans, there have been discussions and research conducted on the potential benefits and risks of a digital dollar, which would possibly be a digital version of the U.S. dollar and would allow the U.S. to maintain global control over the current world financial systems.
It is important to note that while the U.S. government has been cracking down on certain aspects of the cryptocurrency industry, such as illegal activities involving cryptocurrencies, this does not necessarily mean that they are against all forms of digital currencies. In fact, for them, a digital dollar could potentially provide a number of benefits, such as increased efficiency and security of the U.S. payment system, as well as greater financial access and control.
Critics of decentralization argue that a digital dollar would be issued and controlled by the U.S. government, which could provide greater oversight and regulation of the currency compared to decentralized cryptocurrencies such as Bitcoin. They note that this could potentially help to address concerns around illicit activities and money laundering in the cryptocurrency industry. However, those who are in favor of decentralization argue that more regulation means losing the whole idea which is against centralization, to begin with.
While the US government has taken a cautious approach towards cryptocurrencies, there is growing interest in the potential benefits of digital currencies, including a digital dollar. The government may be exploring the possibility of a digital currency as a way to modernize the U.S. payment system and provide greater financial access to all Americans.
But what are they going to do with their own stash of Bitcoin? The U.S. government is the biggest accumulator of seized Bitcoin, it's in Billions. If they dump it, the markets collapse, if they don't, the U.S. dollar will collapse, or maybe, they know the game is now getting over and out of their hands and they are just in panic mode, with nowhere to go.
| Imran Siddiqui is the managing editor at Justice News and the author of The JBlog. Imran's podcast FairPlay Challenging Wrongful Convictions airs on J107Justice Radio
