November 27, 2022

US Deputy Secretary of the Treasury: “Even crypto projects approved by law pose a threat to the state”

U.S. Deputy Treasury Secretary Justin Muzinich said even those cryptocurrency projects which fully comply with regulatory requirements pose a threat to the state.

Speaking at the annual conference of the organizationClearing House and the Institute for Banking Policy, Muzinich, drew attention to the fact that the new class of digital assets affects not only private business, but also a number of activities for which the state is responsible. The proliferation of technology poses a number of potential threats related to national security, monetary base, financial stability, consumer protection and privacy.

The U.S. Treasury is concerned thatcryptocurrencies can be used to evade the requirements of the current legal system, for example, to evade taxes, money laundering and terrorist financing. The United States authorities insist that all participants in the financial system are required to comply with US laws, regardless of the type of transaction - in traditional or digital currency. At the same time, the popularization of cryptocurrencies, which provide complete anonymity, can significantly complicate the process of law enforcement.

Muzinich, as an example, recalled the 1830s, when 90% of all money was issued by private structures:

"Then the US passed a law that saysthat national banks should deal with the issue of currency, and the Central Bank should provide a flexible and stable monetary system. Each element described is an important part of our financial system, ”he said. “If private cryptocurrency is used everywhere, who will make important decisions about any changes?”

According to Muzinich, private cryptocurrencies are not only payments. They can also transfer “some of the functions traditionally performed by the government to the private sector”.

“We follow only the interests of the public and will carefully monitor all of these issues,” he concluded.