According to this banking insider, governments get everything wrong. Bitcoin is one of the least private assets out there, and they have to change the policies of the pendulum to swing in the other direction. In the opinion of banking insiders, rather than protecting them, governments have been harming their citizens with the current draconian measures. This sounds right for bitcoin clients for sure, but this banking insider looks like a real bargain.
He or she wrote, on condition of anonymity Bitcoin Policy Institute article. It begins with “financial privacy—more specifically, the requirement to obtain informed consent before collecting and using others’ personal financial information—is central to individual liberty.” From there, he goes to Mordor and back. Is the banking insider on something? Or are banking insiders just following the Bitcoin party streak? Let’s check out what he said and find out.
But first, this paragraph should not be separated from the opening lines. It accompanies and complements them.
“Given the twin threats of exponentially increasing cybercrime and increasing government surveillance and scrutiny of financial transactions, individual financial privacy is and continues to be under attack on multiple fronts, and the real costs are beginning to emerge in remarkable ways.”
This is a very important topic and the world must discuss it thoroughly as soon as possible. This banking insider serves governments by explaining how privacy works in Bitcoin. The article also reads as a preemptive strike against potential Tornado Cash-like sanctions against the Bitcoin network.
About the author / The Banking Insider
Normally, we wouldn’t disrupt the article flow with author information, but this time it’s important. If readers don’t believe in banking insiders, they won’t take his wise words seriously. This person knows what’s up.
The author chooses to remain anonymous to protect his identity and the company he works for. They have worked for many publicly traded financial institutions in the field of fraud prevention and mitigation; From ground-level tactics to enterprise strategy and policy.”
They have also worked in Identity Verification and are involved in Compliance and Reporting for Your Customer Identity (KYC) and Anti-Money Laundering (AML). The person familiar with the banking information currently works for a bank, which helps it “prevent fraud and comply with current regulatory guidelines on customer identity.” Their warning to governments and citizens alike is as frightening as it is required.
“As someone who has seen identity theft turn the lives of countless victims upside down, I know how important financial privacy is to protecting consumers from fraudsters and criminal networks that have proliferated over the past 15 years. Global fraud losses are estimated to be 6.4% of output global GDP, reaching $5.38 trillion in 2021. Experts point to protecting and securing personal financial information as one of the most important actions anyone can take to mitigate these threats.”
And since we give credit when it’s due, Bitcoin Policy Institute knows himself As a “non-partisan, non-profit organization that researches the policies and societal implications of Bitcoin and emerging cash networks.”
BTC price chart for 09/22/2022 on FX | Source: BTC/USD on TradingView.com
Privacy Banking Insider
According to the informed banks, “cash provides the highest level of privacy.” Second, we have credit card companies or banks, in other words, “third parties that conduct transactions on our behalf.” With these, there is a “relatively high level of privacy” because these companies are “legally obligated not to disclose our transaction information to others without our consent.”
You know who ranks third, “Because Bitcoin is an open public ledger, the user’s transaction history is publicly available.” The transparency of the Bitcoin network means that “anyone can see all transactions in the past and associated with the property at this wallet address – and in many cases, how much Bitcoin is in the wallet!”
This leads us to prevention. Just in case lawmakers contemplate a Tornado Cash-like attack on Bitcoin:
“Bitcoin users who do not wish to share their entire transaction history or net worth when dealing with a merchant can use collaborative transaction tools to put their financial privacy on par with other payment methods. These tools provide a service similar to what Visa provides to its users today; they protect transaction details from Both the counterparty of the transaction and from outside observers.”
It’s not just that cooperative transactions are not a crime. They are absolutely necessary for the system to provide privacy.
“These collaborative transaction tools that enable cryptocurrency exchanges and services are viewed suspiciously by policy makers and financial institutions, as these tools are also conceptually attractive to criminals who want to try to “break the chain” clarity in sources of their money.
Ultimately, the banking insider says only that bitcoin users deserve “the same level of financial privacy that Americans are legally entitled to for everyday transactions — regardless of how these individuals choose to pay or pay.” And that the system is different enough to merit a new set of rules. And that this is not a trivial matter.
“As Bitcoin users grow across regulated exchanges, lawmakers must ensure their financial privacy is protected at the same level as all other regulated payment bars. If this is not addressed soon, the global threat of fraud today will only accelerate.”
Remember, “experts cite protecting and securing personal financial information as one of the most important measures anyone can take to mitigate” privacy threats.
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