Governments across the globe have been ramping up Central Bank Digital Currency (CBDC) research, China has been rolling out further pilots of digital yuan, and the term “crypto” doesn’t quite fit anymore.
Digital currency is poised to take a 180 degree turn from hiding to revealing criminal activity. The widespread adoption of CBDCs would be fintech’s greatest contribution to anti-money laundering enforcement. When the coin of the realm goes digital, government agencies will get a very clear view of financial transactions.
There has been an interplay between secrecy and transparency since the early days of crypto. Strictly speaking bitcoin was pseudonymous, not anonymous. One of the virtues of blockchain technology is that you essentially know exactly where every unit of currency is at all times. Though bitcoin’s distributed ledger obscured owner identity, in theory it could reveal that information.