Non-crypto alternative payment systems pose a serious threat to United States security, according to testimony presented at a U.S. House Financial Services Committee Subcommittee on National Security, International Development, and Monetary Policy hearing Tuesday. The alternative payments ecosystem should be seen as a whole, and crypto can enhance national security, speakers said.
Wilson Center fellow Scott Dueweke told the U.S. House Financial Services subcommittee in written testimony, “By focusing only on cryptocurrencies we risk missing the forest for the trees.”
Money services businesses are heavily regulated in the United States, but those based outside the country may be unwilling to conform to U.S. requirements, including Know Your Customer/Anti-Money Laundering, and they may be outside U.S. and other Western countries’ reporting requirements, Dueweke said.
Dueweke recommended instituting greater financial open source intelligence efforts as a means of counteracting the threat posed SWIFT network alternatives being created by Russia and China and other threats. He…