- Binance CEO challenges traditional banking’s crypto criticism with data-backed insights.
- Richard Teng highlights traditional fiat’s $3.2 trillion illicit activities over crypto.
- Ongoing creative destruction in the crypto industry refutes intrinsic fraud narrative.
In a bold move, Binance’s new CEO, Richard Teng, sheds light on the narrative propagated by traditional banking institutions, claiming cryptos are rife with illicit activities. Teng, in a recent post, challenges this assertion, highlighting the work of Dr. Andrzej Gwizdalski, who gathered data from the United Nations, World Economic Forum, and Cryptoanalysis.
According to Teng, traditional fiat currencies, such as the USD, are implicated in an estimated $3.2 trillion in illegal activities annually, a staggering figure over 100 times higher than the $20 billion linked to cryptos. The data emphasizes the need to reevaluate the prevailing narrative that cryptocurrencies are primarily associated with illicit financial activities.
Gwizdalski’s analysis reveals that crypto crime constitutes less than 1% of the annual $3.2 trillion in illegal activities within the traditional fiat monetary system. The ongoing trial involving FTX and Sam Bankman-Fried, often dominating headlines, is put into perspective, with Teng emphasizing the importance of considering the larger context.
The global scale of corruption and money laundering associated with traditional fiat money, as reported by the United Nations and World Economic Forum, provides a compelling backdrop to the comparatively lower figures associated with crypto crime. Teng argues that using crypto for illegal purposes is inherently risky, given that every transaction is transparently recorded.
As the crypto industry navigates a period of creative destruction, Teng urges policymakers to be well-informed and address real issues within traditional financial systems. He emphasizes that the core value proposition of blockchain and Web3 remains intact, with ongoing innovations in cryptos, blockchain technologies, and smart contracts.
Teng concludes that nothing in the current crypto creative destruction validates the narrative that these digital systems are inherently fraudulent. He calls for clear-eyed strategic thinking and technological exploration to debunk negative perceptions and narratives surrounding cryptos.
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