“When you have large financial sums in secret, you have risks of money laundering, risks of supporting criminal activity, risk of innocent people being ripped off,” he said.
Summers was making the comments after China banned all crypto transactions and vowed to stop illegal crypto mining, delivering the toughest blow yet to the trillion-dollar industry.
The country — which has long expressed displeasure with crypto because of its ties to fraud, money laundering and excessive energy usage — said that digital tokens including Bitcoin and Tether are not fiat currency and cannot be circulated.
The crypto industry should shed the idea that it will function as a “libertarian paradise” where government rules cannot be imposed, Summers said, adding that all sectors that are systemic in their importance need to recognise that. “Not just for the protection of consumers but protection of themselves,” he added. — Bloomberg
Photo: Bloomberg
