British banks warn Bitcoin could help terrorists
by Guy Bentley
Cryptocurrency Bitcoin could make it easier for terrorists to evade the intelligence services, according to Britain's leading banks.
In a document sent to the Treasury the British Bankers Association (BBA) warned the chancellor that partial anonymity Bitcoin provides, and its structure as a peer-to-peer currency, provide opportunities for criminals.
The BBA said banks need to be able to demonstrate that transactions are legitimate and that they are not supporting criminal or terrorist activity. At present ... [banks] are unclear on their responsibilities with regards to servicing those working with, paying or receiving digital currencies". {Funny, they don't seem to have any problem blocking gun manufacturers from accessing their own money - Ed}
Last year, George Osborne announced plans to explore how cryptocurrencies such as Bitcoin can play a role in the UK financial system. Treasury was tasked to produce a report on digital currencies, examining their potential benefits and risks. Osborne said he aims to make the UK the "global centre of financial innovation". Speaking to the Sunday Telegraph, the BBA's chief executive Anthony Browne said: The reality is that if terrorists and criminals harness these unregulated currencies they will be far harder for the law enforcement and intelligence agencies to hunt down.
Bitcoin has suffered a massive fall in its value over the past year. Last year, the world's biggest digital currency reached the dizzying heights of $1,000 per Bitcoin. On Wednesday, Bitcoin fell through the floor touching lows of $173.
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{Note: Cellphones and public highways are also used by the criminal element, shouldn't they be banned? The attack on Bitcoin is simply an attack on freedom and the free market system. No one should have to permit government snooping into their private dealings to prove they are not a terrorist, that's an attempt to substitute Roman style law for the English Common law system of presumption of innocense.
The greatest danger to Bitcoin is not the criminal element but the developing global government. The 'dark Internet' and its currency represent a threat to total Information Awareness and hence taxation. The freedom of the 'dark Internet' is a threat to the International Monetary Fund's total control of the global economy. However, it will be a different story when the global govt controls Bitcoin. The article first appeared here. - Ed}