Bitcoin has been referred to as a threat to the existing financial system because of its decentralized nature that does not allow central control. Bitcoin transactions have also formerly been said to be anonymous and so allows bad actors to use it for illegal activities on the darknet. This view seems to be changing now as privacy coins are starting to evolve.
A recent report from the German ministry of finance on the assessment of risks to financial security suggests that privacy-focused cryptocurrencies actually pose a greater threat to financial security than Bitcoin according to a Decrypt report.
This is primarily due to the anonymous nature of transactions carried out using Monero which criminals are starting to leverage on the darknet. The report read:
“Due to the increasing popularity of Monero on the Darknet, it can be foreseen that this crypto asset, especially, will gain more practical relevance in the future in the area of securing and exploitation” Read More...