One thing that regulators are worried about most when it comes to cryptocurrency is the likelihood of criminal activity. This is something that has been affecting the crypto space for a long time now but wen Facebook announced plans to launch its Libra token, such concerns were amplified significantly.
Lawmakers from across the globe have expressed their concerns over bitcoin and cryptocurrencies (Donald Trump being one of them) but the former United States Prosecutor turned venture capitalist, Katie Haun is a believer in crypto, but more specifically blockchain…
When Haun worked for the government, her team was investigating the leading cryptocurrency which was, at the time, a brand new kind of technology. During her time, Haun noticed that bitcoin itself wasn’t actually used in criminal activities and that the underlying tech, blockchain was what helped her in solving the majority of the cases she prosecuted.
Blockchain transactions are stored on a digital public ledger which can be accessed by anyone however, they can only be viewed, not edited nor deleted. Haun refers to this as ‘digital breadcrumbs’, which are the reason the government was able to seamlessly sniff out illicit funds as compared to tracking cash. She added:
“The government was able to use that same technology to actually track down criminal activity it might not otherwise have been able to. Without the technology underlying bitcoin, we never would have been able to catch those people.”
Haun went onto discuss Facebook’s stablecoin, Libra.
She believes that regulators are too hard on the token and that they need to give it a chance before a final decision is made.
“What we heard with Libra were the same criticisms. They were just heightened and they got more attention because of the high-profile nature of the project and the fact that Facebook was involved. I think it would be a really dangerous thing, and frankly, a dangerous precedent to start shutting down technology before it’s built,” Haun stated.