According to this banking insider, governments got it all wrong. Bitcoin is one of the least private assets out there and they should change policies to make the pendulum swing the other way. According to the banking insider, instead of protecting them, governments are harming their citizens with the current draconian measures. That sure sounds convenient for bitcoiners, but this banking insider seems to be the real deal.
He or she wrote on condition of anonymity an essay for the Bitcoin Policy Institute. It begins with: “Financial privacy – and in particular the need to obtain informed consent before the collection and use of another’s personal financial information – is fundamental to individual liberty.” From there it goes to Mordor and back. Is the banking insider on to something? Or does the banking insider only follow the Bitcoiner party line? Let’s examine what she or he said and find out.
But first, let’s not separate this paragraph from the opening lines. It accompanies and complements them.
“Due to the twin threats of exponentially increasing cybercrime and heightened government surveillance and scrutiny of financial transactions, individual financial privacy is and has been under attack on multiple fronts, and the true costs are beginning to manifest in tangible ways.”
This is a very important issue and the world should discuss it thoroughly as soon as possible. This banking insider is doing governments a favor by explaining how Bitcoin privacy works. The essay also reads like a pre-emptive strike against possible Tornado Cash-like sanctions against the Bitcoin network.
About the Author / The Banking Insider
Normally we wouldn’t break the flow of the article with author information, but this time it’s important. Anyone who doesn’t believe the bank insider doesn’t take his wisdom seriously. This person knows what’s going on.
“The author wishes to remain anonymous to protect his identity and the company he works for. You have worked at several publicly traded financial institutions in the field of fraud prevention and mitigation; from ground level tactics to corporate strategy and policy.”
They also worked in “Identity Verification” and are involved in “Compliance and Reporting” of KYC and AML. The banking insider currently works at a bank, helping it “prevent fraud and comply with existing regulatory guidelines on customer identity.” Your warning to governments and citizens alike is as chilling as it needs to be.
“As someone who has seen identity theft turn the lives of countless victims upside down, I know how important financial privacy is in protecting consumers from scammers and the criminal networks that have proliferated over the past 15 years . It is estimated that global fraud losses are equivalent to 6.4% of global GDP and amount to a staggering $5.38 trillion in 2021. Experts cite protecting and securing personal financial information as one of the most important steps an individual can take to mitigate these threats.”
And giving credit where it’s due, The Bitcoin Policy Institute defines itself as a “non-partisan, non-profit organization that researches the political and societal implications of Bitcoin and emerging monetary networks.”
BTC price chart for 09/22/2022 on FX | Source: BTC/USD on TradingView.com
The banking insider on the subject of data protection
According to the banking insider, “cash offers the highest level of privacy.” Second, we have credit card companies or banks, in other words, “third parties who transact on our behalf.” There is “a relatively high level of privacy” when using them, as these companies are “required by law not to share our transaction information with others without our consent.”
You know who’s third because “because bitcoin is an open, public ledger, a user’s transaction history is publicly available to all.” linked to the holdings in that wallet address – and in many cases, how much bitcoin is in the wallet!”
That leads us to prevention. Just in case lawmakers consider spearheading a Tornado Cash-like attack on Bitcoin:
“Bitcoin users who don’t want to share their entire transaction history or net worth when transacting with a merchant can use collaborative transaction tools to bring their financial privacy to the level of their other payment methods. These tools offer a similar service to Visa to its users today; They protect transaction details from both the transaction counterparty and outside observers.”
It’s not just that collaborative transactions aren’t a crime. They are absolutely necessary for the system to provide privacy.
“These collaborative transaction tools show a clear advantage for end-users, but are viewed with suspicion by policymakers and the financial institutions that enable the crypto exchanges and services because these tools are also conceptually attractive to criminals looking to try to “break the chain.” break through”. ” the insight into the sources of their means.”
Conclusions
In the end, the banking insider says only that Bitcoin users “deserve the same level of financial privacy that Americans are legally entitled to for everyday transactions — regardless of how those individuals pay or are paid.” And that the system is different enough to merit a new set of rules. And that this is not trivial.
“As bitcoin users grow through regulated exchanges, lawmakers must ensure their financial privacy is protected at the same level as any other regulated payment rail. If this is not addressed soon, the global threat that fraud poses today will only accelerate.”
Remember that “experts cite protecting and securing personal financial information as one of the most important steps an individual can take to mitigate privacy threats.”
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