If you don’t know who Steven Mnuchin is, you’re going to pretty soon, especially if you are involved in cryptocurrencies. He is the US Treasury Secretary. But he seems to be positioning himself to become the head enforcer of the US Government against Cryptocurrencies.
He means to shake down and control the pesky growing crypto world to assure that, by any means necessary, his mob bosses, the owners and managers of the coercive association, continue to get their pound of flesh from every exchange of value between any entities within their territory.
Steve Mnuchin is fast becoming the Bitcoin Czar, and he means to rule over your Bitcoins with an iron first, come what may, and he’ll do so for freedom and liberty and security and patriotism.
The US Treasury Secretary issued a number of statements recently on the ‘dangers’ of cryptocurrencies. Predictably, he pulled on the fear factor card that if people can use cryptocurrencies anonymously, they can use these funds for “illicit purposes.”
Here is what he told Yahoo News in an interview when asked about the dangers of Bitcoin:
“It’s something we are looking at very carefully and will continue to look at. The first issue and the most important issue is to make sure that people can’t use bitcoin for illicit activities. So we want to make sure that you don’t have the dark web funded in bitcoins. And that’s something that is a concern of ours today.”
He hinted at another tactic that will be used to burden the bitcoin “dealer” down, to treat them like any other dealer in securities. After all, you can’t give them an unfair advantage over other types of securities dealers that have to deal with regulations (never mind that maybe NO ONE will have to deal with those regulations).
He said, “So if you’re a bitcoin dealer in the United States, you have the…customer requirements and BSA requirements. And those are issues I’m discussing with all my international counterparts. So our number one issue is, we wanna make sure that this is not used for illicit transfers of funds.”
His statement here smacks of sheer ignorance in even a BASIC understanding of how bitcoin works. I am sure, if you have an even rudimentary understanding of bitcoin, you are wondering what the heck a bitcoin ‘dealer’ is. When you figure it out, you let me know.
Then there’s this from Bloomberg:
Speaking to the Economic Club of Washington on Friday, he said wants to ensure “bad people cannot use these currencies to do bad things.”
Under U.S. law, “if you have a wallet to own bitcoins, that company has the same obligation as a bank to know” you as a customer, Mnuchin said. “We can track those activities. The rest of the world doesn’t have that, so one of the things we will be working very closely with the G-20 is making sure that this doesn’t become the Swiss bank account.”
As I have been repeating over and over and over and over again, the two biggest enemies to the coercive association are self-reliance and anonymity.
Blockchain-based cryptocurrencies can contribute to empowering individuals and free associations to move in both directions, to gain more self-reliance by engaging in transferring value between one another by using a currency that is not controlled by a coercive association, and doing so in ways that the coercive association is unable to come in and carve out its “cut” in the transaction.
This is the equivalent to a Mob discovering that some businesses have figured out a way to prevent their shakedown goons from gaining access to their business. Note the manner in which this enemy of liberty, this purveyor of the blood sport of coercive association politicking, is bragging about depriving people of their ability to trade in value without having that transaction being infringed upon by his team of shakedown artists.
Adding to the fear factor card that cryptocurrencies, if left unregulated, will help drug dealers and terrorists shift funds without detection, the Treasury Secretary added that the danger also lies in nation-states (other coercive associations) will have the ability to skirt ‘financial sanctions’ from the US.
He mentioned Russia and Venezuela as two nation-states that could potentially use cryptocurrencies to escape the long arm of the US shakedown goons as they use their advantage of being the world currency to financially coerce others to bend to their will.
The bottom line is this, the state fears you if you are working to build anonymity. But fear not, the very efforts the state takes to shut down this threat will simply drive those who seek to be disentangled from the coercive association into deeper and deeper, blacker and blacker markets.
And, in time, their neighbors will see the advantage of moving into those deeper and deeper, blacker and blacker markets as well, not out of some ideal sense of rejecting the coercive association, but out of a practical, economic sense as the cost of continuing to participate in the failed experiment of the coercive association only increases.
If it hasn’t happened already, I am sure that what’s coming are new coins, anonymous coins, coins that won’t be so openly traded, even talked about, where people who hope to escape the prying eyes of the shakedown goons of the coercive association will gather to exchange value, freely, without having to give the unearned cut to the Mob, that is, the coercive association.