Regulators Would Hyperventilate at Bitcoin's Success

Regulators Would Hyperventilate at Bitcoin’s Success


On Jan. 25, the former CEO of Goldman Sachs, Lloyd Blankfein appeared on CNBC’s Squawk Box saying that regulators should be hyperventilating looking at Bitcoin’s recent success. Blankfein appeared on the show to discuss the future of Bitcoin and other cryptocurrencies. He believes that crypto-assets can undermine the capacity for lawmakers to monitor the financial system.

Former CEO of Goldman Sachs Discussed Bitcoin and Other Cryptocurrencies

Lloyd Blankfein was asked on CNBC how he sees the future of Bitcoin and other cryptocurrencies considering that BTC appears to be going mainstream as large institutional investors are getting involved too.

According to him, there is a reason to remain skeptical of Bitcoin as it doesn’t exactly meet the criteria as a currency:

“It could work,” Blankfein admitted. Although “at the end of the day, currency is supposed to accomplish a couple of things. It’s supposed to be a medium of exchange and a store of value.”

“If I were a regulator I would be kind of hyperventilating at the success of it at the moment, and I’d be arming myself to deal with it,” says @LloydBlankfein on #bitcoin

— Squawk Box (@SquawkCNBC) January 25, 2021

Despite regulatory authorities making the best out of blockchain’s transparency to track the use of cryptocurrency by terrorist organizations, he views that Bitcoin’s pseudonymous nature makes it perfect for illicit financing.

He asserted that bitcoin users have no way of knowing if enemy states like North Korea and Iran are counter-parties to their transactions. He then seemingly implied there is no way to monitor bitcoin transactions while wholly ignoring the cryptocurrency’s inherent traceability

“You don’t know whether or not you’re paying the North Koreans, or Al-Qaeda, or the revolutionary guard.”

Blankfein Criticized Bitcoin As a Store of Value

Blankfein also criticized Bitcoin as a store of value owing to its price volatility and the knowledge required for the safekeeping of the cryptocurrency:

“It’s a store of value that can move 10% in a day, that if you lose the code or if you lose the slip of paper it’s lost forever, or if somebody takes it from you how will you know.”

However, the former CEO of Goldman Sachs also added that if he were a regulator, he would be hyperventilating at the success of bitcoin right now and that he would be arming himself to deal with it.

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