Former Goldman Sachs CEO. Lloyd Blankfein trashed bitcoin’s “store of value” and “medium of exchange” propositions on CNBC Monday, stressing that if the cryptocurrency ever grew to a substantial size the regulators would likely move to shut it down.
The old coat Ex-chairman said if he were a regulator, he would be “hyperventilating” at the success of bitcoin right now “You don’t know whether or not you’re paying the North Koreans or Al Qaeda or the Revolutionary Guard,” Lloyd Blankfein, former Goldman Sachs CEO, told CNBC’s “Squawk Box” Monday. “If I were a regulator, I would be kind of hyperventilating at the success of it at the moment and I’d be arming myself to deal with it.”
“It could work,” Blankfein admitted. He then explained that “at the end of the day, The currency is supposed to accomplish a couple of things. It’s supposed to be a medium of exchange and a store of value.”
Nonetheless, he said: “At the end of the day, if it ever got big enough to be substantial and a real medium of exchange, how could the regulators so focused as they are on anti-money laundering” not step in and do something about it. He believes that there are good reasons for monitoring who is getting paid in the financial system. “Going back to 9/11, we found out that following the money is the way you can anticipate and maybe prevent certain crimes and of course everybody talks about the illicit use of bitcoin,” the former Goldman Sachs CEO opined.
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