Cryptocurrencies have alarming potential for unauthorized use, says article in TCE-PR

An article published by the Journal of the Court of Auditors of the State of Paraná (TCE-PR) concluded that cryptocurrencies have an alarming illicit use rate. One of the main issues, according to the authors, is the ease of money laundering with digital currencies.

Launched last Thursday (27), the 39th Digital Magazine, published quarterly, has publications from January to March 2023.

On this subject, the article “Recent History of Cryptocurrencies and their Repercussions on Law” is the first in the publication.

The debate is written by the post-doctor of law and external audit auditor of the TCE-PR Cláudio Henrique de Castro and the bachelor of law Otto Cesar Kosel.

When explaining concepts of cryptocurrencies, authors believe in the danger of technology

The article begins by showing that the digital economy has grown, with the ability to shop without leaving the house, for example. For example, technology is transforming relationships in society, facilitating negotiations and transactions with new means of payment.

The researchers point out that one technology that was impossible to surface in the past is that of cryptocurrencies. But with technological advancements, anything has become possible.

“A problem unimaginable even at the end of the last century, but made possible due to technological advancements, consists of digital currencies, now known as cryptocurrencies.”

For the authors who published the article in the journal, the novelty of cryptocurrencies, in addition to some advantages, allows for a dangerous counterpart.

This is because the authors state that “this tool has often been used for money laundering, especially through pyramid schemes“.

Article concludes that cryptocurrencies alarmingly facilitate unauthorized use for money laundering

In the article’s conclusion, the researchers warn about the alarming growth of cryptocurrency pyramids and the unauthorized use of digital currencies in money laundering.

“However, there are some obstacles in the cyber field, and more specifically with regard to cryptocurrencies, it is possible to talk about fraud and money laundering. This is an alarming possibility, especially due to the anonymity that the coin offers to its owner, so that its use is not only to acquire illegal products, but also to launder money. In this step, it should be clarified that various scams have been used over the years and, as a result, there have been many victims. Various damages have been done to the economy of individuals investing in cryptocurrencies.”

Finally, the authors state that the Central Bank of Brazil is starting to monitor cryptocurrency transactions to avoid problems due to technology.

TCE-PR publishes an article warning against the growth of cryptocurrencies and their unauthorized use in Brazil
TCE-PR publishes an article warning against the growth of cryptocurrencies and their unauthorized use in Brazil/Reproduction.

Source: Live Coins