Bitcoin shouldn't become the new Swiss bank account: Mnuchin

US Treasury Secretary Steven Mnuchin acknowledged that some central banks were looking into the possibility of creating digital
US Treasury Secretary Steven Mnuchin acknowledged that some central banks were looking into the possibility of creating digital currencies instead of issuing cash

Dominant digital currency bitcoin should not be allowed to become the Swiss bank account of the modern era used to hide illicit activity, Treasury Secretary Steven Mnuchin said Friday.

Mnuchin pledged to work with other governments, including within the Group of 20, which includes the world's major economies, to monitor the activity of those who invest heavily in the cryptocurrency.

"One of the things we will be working with the G20 on is making sure that this doesn't become the Swiss numbered ," he said at a conference, referring to the famously secretive accounts used by some to hide ill-gotten gains.

"We want make sure that bad people can't use this to do bad things."

US rule require banks to have information on customers with bitcoin accounts to try to prevent money laundering and other illicit activity.

Mnuchin acknowledged that some central banks were looking into the possibility of creating digital currencies instead of issuing cash, but said the US Federal Reserve was not yet considering such a move.

Asked about the possibility that Russia would create its own to escape financial sanctions, Mnuchin said "I don't think that's a concern."


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Citation: Bitcoin shouldn't become the new Swiss bank account: Mnuchin (2018, January 13) retrieved 25 May 2019 from https://phys.org/news/2018-01-bitcoin-shouldnt-swiss-bank-account.html
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