U.S Secretary of State Mike Pompeo became the latest high ranking U.S official to comment on the emergence of cryptocurrencies as a tool for bad actors who use the anonymous feature of the new type of money to hide their activities.
Pompeo revealed his thoughts regarding crypto in a Tuesday interview with CNBC’s Squawk Box, and wouldn’t have been drawn into the debate had presenter Joe Kernen who is now a Bitcoin enthusiast not asked for his opinion.
Precisely, Joe Kernen recalled recent comments by U.S Treasury Secretary Steve Mnuchin that cash isn't mainly used to launder money as much as cryptocurrencies, and thus questioned Mike Pompeo about his take on anonymous crypto transactions.
The U.S Secretary of State in response said he hoped that in five years that there wouldn’t be an increase in anonymous transactions since it would 'decrease the security of the world.'
According to him, there is a need to preserve a global financial system that protects the right for people and governments to have the “capacity to understand money flows and who was moving money.” He suggested that the current financial system has served that role perfectly by making it easy to track nefarious activities.
Moving forward, Mike Pompeo also shared his thoughts regarding what kind of regulation should apply to the planned Facebook Libra, Bitcoin, and other cryptocurrencies.
“We should use the same framework that we use to regulate all other electronic financial transactions today [..] .. the same set of requirements that apply to things following through SWIFT or flowing through our financial institutions are to apply to those transactions as well,” Pompeo said.
He conclusively added that while it is true that adopting such an approach could be difficult, it represents the “regulatory theory” that should apply to cryptocurrencies.