Bitcoin as a Payment System


Debates over the suitability of Bitcoin as a payment system continue. Last week, CFTC chairman J. Christoper Giancarlo stated he does not believe Bitcoin to be an “ideal” payment system. The chair has this mentality despite also saying Bitcoin has similarities to gold.

This week, the Bank of America CTO joined the conversation.

Bitcoin as a Payment System

On Thursday, Catherine Bessant, Bank of America CTO, stated that Bitcoin as a payment system is very “troubling.” Not just Bitcoin, however, Bessant referred to the use of other cryptocurrencies as payment systems as well. Many recognize that the crypto sector comes with risk, with cryptocurrencies acting in illegal activity, such as money-laundering. The payment systems industry also has its trouble, with criminals using it for illegal purposes. Now, Catherine Bessant has said that virtual currencies are getting in the way of law enforcement closing in on the criminals using payment systems this way. 

UK Central Bank to Tackle Issues Like Crypto Money Laundering

In an interview with CNBC, Bessant said that Bitcoin as a payment system is “troubling” for one reason, in particular. According to Bessant, cryptocurrency is designed to not be transparent – and this is a problem. Why? Because this makes it more difficult to monitor business transactions in the cyber world. The chief technical officer went on to say that the way you catch financial criminals is by “being transparent in the financial moment of money.” Things get a little tricky, though, when virtual currencies are “the antithesis of that,” said Bessant. 

What are the Crypto Markets Saying?

So, that’s two people in a span of two weeks that have said Bitcoin as a payment system is not ideal. But what do the masses have to say about that? Let’s see what we can find out. 

One crypto analyst seemed to be against Bessant’s statements, tweeting to his followers that blockchain is “more transparent than the current banking system.” 

The crypto community on Twitter seemed to agree with the above-mentioned analyst, with one user tweeting that Bessant only said this because Bank of America “can’t figure out where their business model fits in this new world of money.” 

The Takeaway

What do you think about both Bessant and Giancarlo’s comments about Bitcoin as a payment system? Voice your opinion below! 

Featured Image: Twitter

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