France’s finance minister Bruno Le Maire maintains his hostile stance towards some digital currencies. This time, assured that Bitcoin is not an alternative, but Blockchain is, since it is a technology that can be used for many areas.
It is not the first time that this official maintains a similar position. During a meeting of the eurozone finance ministers, held last year in Finland, Le Maire assured what Facebook’s Libra and others like it, undermine the monetary sovereignty of states.
These new statements (via Twitter) by the French minister against cryptocurrencies are accompanied by praise for the blockchain. “I do not question the traceability and reliability of Blockchain technology”, He specified in the same message.
Blockchain is convenient, not Bitcoin and other cryptocurrencies
The main reason for the aforementioned official to affirm that Blockchain has a future, but cryptocurrencies such as Bitcoin or Libra do not, is because of the use that many criminal organizations make of it.
In her tweet, which was a response to Stachain Capital’s Ciryl Paglino, she claims that cryptocurrencies are used for fraudulent activities. They, in his opinion, facilitate various types of crimes such as the drug trade, arms and money laundering..
The opinion that cryptocurrencies are used to execute criminal transactions is widespread. Even, many studies ensure that the increase in illegal activities such as those cited by the French finance minister is due to the rise of digital currencies.
“The attractiveness of the coin (from Bitcoin), resides in anonymity and in the fact that it is difficult to follow the trace“Writes the newspaper ABC. However, the monitoring of Bitcoin transactions is possible through the use of the Blockchain network, which is a transparent technology.
Criminals’ Favorite Weapon
In the same way that the qualification of Bitcoin as a means for criminals who take advantage of Blockhain is not new, nor is the defense of cryptocurrencies. Among the most active advocates of digital currencies is analyst Max Keizer.
For this Bitcoin enthusiast, there is nothing more used for human, gun and drug trafficking than the USD. Ciryl Paglino responded in the same tone to the statements of Minister Le Maire.
“That 10-year-old myth about cryptocurrencies must stop spreading. Blockchain transactions are secure and traceable”, He emphasizes. Likewise, it highlights that they do not arouse any interest for a terrorist, “unlike cash flowing to him without any control”.
Recently, a narrative of an alleged $ 300 million USD in BTC was spread under the possession of the self-described “Islamic State”. It was denied by the firm Chainalysis, through a report where the Bitcoin Blockchain was studied in detail.
So where does the money that criminals use come from?
The fact that the French finance minister considers that Bitcoin is not good for the economy, but Blockchain is, could be classified as a contradiction. Any digital currency with the exception of Monero, Zcash and others, is transparent due precisely to the qualities of their respective Blockchain.
In the same exchange of tweets, Paglino mentioned a case that is in full swing. It is the investigation of the large corporations JPMorgan, Deutsche Bank and HSBC, which would have promoted money laundering between 1999 and 2017.
This is news that contributed significantly to the shakeup in equity markets yesterday. For two decades, these financial institutions moved funds illegally.
Taking this fact as a reference, Paglino approached Le Maire, urging him to put the magnifying glass where crime was really thriving. “On the issue of terrorist financing, several banks have already been (slightly) convicted. Perhaps it would be interesting to take a look at that sector”.
An important fact to keep in mind is that, at the end of last March, a justice institution of the Gallic nation recognized Bitcoin as legal money.
Consequently, as reported by CriptoTendencia at the time, the Nanterre Commercial Court, gave cryptocurrency identical qualities to fiat money. With this, it opened “a very important legal precedent, not only for French jurisprudence, but for all countries in the world”.
Despite this fact, which resonated on the main news portals, Paris remains deeply hostile to cryptocurrencies. The fact that an important official such as the head of the finance portfolio considers Bitcoin bad and Blockchain good, is a clear example of the trend of the State.
Despite everything, Bitcoin continues to circulate in France and gaining space among citizens and investors. The insecurity of the economy in the face of the challenges of the Covid-19 pandemic, continues to be a factor of great weight in favor, both of Bitcoin in particular and of cryptocurrencies in general and their technology, the Blockchain.
France has been working on a legal framework
Another of the episodes starring Le Maire, also in March, was related to the creation of a legal framework for cryptocurrencies. At that time, the minister expressed the same perception that Bitcoin is not convenient, but Blockchain technology is.
“Although we are benevolent about the potential and opportunities of Blockchain, we are also cautious”He wrote in an opinion piece. Likewise, he highlighted that “support innovation, it does not prevent measuring the risks involved”.
At that time, the news of the creation in France of a regulatory framework for ICOs was celebrated. It is called PACTE, or Action Plan for the Growth and Transformation of Companies. In it, FinTech firms that have ICO proposals will be allowed to regulate themselves before the authorities.
At this time, it cannot be stated with certainty what will happen to cryptocurrencies such as Bitcoin and Blockchain technology in France. But the important thing is that the new technology is gaining strength and the main cause could be the structural failures of the old system and the “recipes” of the States to correct them.
Data to take into consideration
- Few digital currencies are used by criminal organizations. Of these, Bitcoin is not the main one.
- It is not the first time that Bruno Le Maire has expressed his negative opinion regarding cryptocurrencies.
- Although Bitcoin is not convenient, Blockchain does have worthwhile attributes, Le Maire believes.
- The recent FinCEN leaked case shows that the USD is the main tool for financing illegal activities and not Bitcoin.
- Last March, a court in Nanterre, France, granted Bitcoin the same characteristics as fiat money.