Advantages of stablecoins
On the 15th, Tether, which issues the US dollar stablecoin “USDT”, issued a statement criticizing the United Nations’ citing of USDT as an example of a crypto asset (virtual currency) used for illegal activities. did.
The company points out that this view only emphasizes the problems and ignores the benefits. USDT argues that it can play a role in supporting developing economies that have been ignored by profit-oriented traditional financial institutions.
connection: What is a stablecoin that even beginners can understand? Explaining its features and use cases
On the same day, the United Nations Office on Drugs and Crime (UNODC) released a report on illegal activities such as money laundering. At that time, he pointed out that casinos and virtual currencies are primarily accelerating money laundering, underground bank operations, and online fraud in East and Southeast Asia.
What is an underground bank?
An entity that does not comply with the law and conducts remittances without permission or registration.
▶️Virtual currency glossary
He explained that illegally operated gambling platforms in particular are being used to launder virtual currency money. At that time, he pointed out that USDT on the TRON (TRX) blockchain is often used.
UNODC explains the characteristics of virtual currency as follows: “It is highly anonymous, accounts can be created instantly and free of charge, and thousands of remittances can be made at low cost for money laundering purposes.”
In response to UNODC’s view, Tether claims that it is cooperating with the U.S. Department of Justice and the Federal Bureau of Investigation (FBI) to monitor its virtual currency. He said he had frozen assets worth more than $300 million (approximately 44 billion yen) in recent months.
connection: Tether cooperates with the US Department of Justice to freeze USDT worth 30 billion yen
The UN analysis ignores the traceability of cryptocurrencies and Tether’s track record of cooperating with law enforcement. Rather than focusing solely on risks, the discussion should focus on how centralized stablecoins can help deter crime.
The company said it believes the United Nations will benefit from a better understanding of blockchain technology and its benefits.
connection: China strengthens crackdown on foreign currency exchange using virtual currency Tether (USDT), etc.