A crypto currency that can’t be tracked
But the world of crypto currencies is diverse and constantly evolving. Monero developer Howard „hyc“ Chu described Monero in his presentation at DefCON26 Monero as the Bitcoin 2.0. Monero is what people initially thought about Bitcoin – the „anonymous hacker money“. In addition to the many errors that Monero ironed out in comparison to the Bitcoin protocol, the crypto currency should actually be regarded as money. Because the units in Monero are fungible. In other words, they cannot be distinguished from each other. It is therefore technically impossible to monitor transactions, assign real identities and censor payments.
Monero is an open source software protocol. Thus, the computer code is public and can be copied and modified by anyone. As Crypto Wars showed in the 90s, computer code is just like speech. So as long as you enjoy freedom of speech, you should also enjoy open source crypto currencies.
Monero enables private money transfers. A new option is offered to mankind: the exit from the supervised financial system. The opponents of this use the same arguments that were initially used against Bitcoin: It serves drug trafficking, money laundering and terrorist financing.
Privacy is for Bitcoin code criminals
In the ranks of regulation, a voice is now being raised that has been subtly resonating in rhetoric for decades: Anyone who wants to be private has something to hide – is (potentially) a Bitcoin code criminal: https://www.geldplus.net/en/bitcoin-code-review/ The mere fact that no control is possible reinforces this argument. The state is outraged. In order to protect the population against terrorism and to prevent money laundering, it is necessary to be able to monitor money flows. An asset that does not allow such monitoring would be ideal for terrorist financing and money laundering.
The fact that chain analysis is not as simple for all crypto currencies as it is for Bitcoin has meanwhile also been noticed by secret services around the globe. What was first feared at Bitcoin is now true at Monero. And so the U.S. Secret Service, Europol & Co. keep a suspicious eye on the private crypto currencies. Here one would like to cooperate, nevertheless, all states are threatened by the existence of an anonymous crypto currency. The consensus is the often recited mantra: „If you have nothing to hide, you have nothing to fear“. Suddenly everyone is suspicious and can only breathe a sigh of relief when they have been completely controlled and found to be „clean“. What the exact definition of „clean“ is is at the discretion of the legislator.
Private crypto currencies are such a big threat that the U.S. Department of Homeland Security (DHS) is now taking the next logical step and wants to take active action against privacy in Monero and ZCash: In a competition, DHS is looking for surveillance methods for privacy coins.
The fear of losing control of the Bitcoin code
There appears to be a keen interest in the full monitoring of the Bitcoin code markets. The justification is, of course, the protection of the Bitcoin code, the population and citizens. After all, we do not want attacks such as those on 11 September 2001 to be repeated. In addition to terrorism, money laundering is also the target of state institutions.
But the attitude of the secret services and governments seems hypocritical to me. If money laundering were really a problem, why is HSBC allowed to continue doing business? If terrorism is so threatening, why is the CIA violating the UN Charter of 1945 and arming „rebel groups“ in the Middle East? (Note: Whether rebel or terrorist is often just a question of the side you’re on right now). Money laundering and terrorist financing are the status quo arguments for ever further restricting human freedoms in the name of the peoples.
However, even Thomas P. Ott of the U.S. Department of the Treasury has to admit that traditional financial methods are still the primary vehicle for most illegal activities. If you’re worried about terror, murder and corruption, you might want to put your own house in order. Let us not forget the tax-funded, illegal wars in the Middle East, which violate international law. I find it hard to believe that this is a mistake or an oversight.
The conclusion that remains is that governments around the world are not primarily concerned with protecting the population. Remember all the flimsy reasons and untruths that have already been told to start wars: „Poland has started“, „Vietnam has started“, „Saddam Hussein has weapons of mass destruction“, to name just a few.