Paul Krugman felt it was inappropriate for the government to give companies and crypto investors the right to open a bank account with any bank operating in the United States.
“Elon Musk, Marc Andreesen and other influential players in the crypto industry are talking about a government conspiracy that wants to undermine cryptocurrency. Of course it is. But the real reason why banks don’t want to be financially involved with cryptocurrencies is that digital assets are used mostly for speculation and crime. Therefore, banks do not want to be accused of complicity,” the economist explained.
Cryptocurrencies have also shown themselves to be a tool for conducting illegal and opaque transactions that are difficult for law enforcement agencies to track. The scale of use of cryptocurrencies for money laundering is growing rapidly, the Nobel laureate is convinced. According to Krugman, if he ran a bank, he would not open a bank account to someone who might be involved in questionable activities.
Previously, Krugman called not to perceive the crypto industry as a branch of the economy and was outraged by the use of cryptocurrencies to finance political campaigns. A few years ago, an economist compared cryptocurrencies to a house built on sand without a solid foundation.
Source: Bits
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