Why criminals prefer cash (Fiat) on top of crypto?

Foster

New member
As of late, crypto has become extremely popular due to the negative effects of COVID-19 in the mainstream economy. People are starting to consider crypto to be a safe-haven against the traditional monetary system empowered by banks worldwide. Yet, the vast majority still relies on Fiat for day-to-day transactions because of its price stability and widespread acceptance in the mainstream world.

With the advent of privacy coins, people can enjoy true financial freedom like never before. Privacy coins can become attractive tools for illicit activities because of their untraceable blockchain ledger. Despite all of the benefits privacy coins provide, criminals still rely on Fiat for all of their nefarious actions. I'm starting to wonder why, since Fiat (physical cash) is not as anonymous as one thought it would be. Privacy coins are truly anonymous (especially those that are private by default like Monero and Grin), as there is no central authority behind them. Maybe criminals prefer Fiat because of its high level of adoption in the mainstream world? Or maybe because Fiat has an easier learning curve than crypto?

If by any means criminals start adopting crypto in mass (especially privacy coins), we could expect a full government crackdown on the entire industry. Which is why I think it's best for criminals to continue using Fiat for the sake of the crypto/Blockchain industry's growth worldwide. But we'll never know what will happen in the future. Thoughts?
Huh
 

Maison

New member
No, they aren't. It is near impossible (if not actually impossible) to be anonymous on the internet.

If you host your own Monero node, run it via Tor, buy your Monero using untraceable cash which you anonymously send to your trading partner without ever revealing any personal information, etc., etc., then yes, using Monero brings you very close to anonymity. Simply buying and using Monero does not, as you can and will leak your information in a hundred other ways, from KYC tracking to IP addresses to browser fingerprints to other currencies you trade to and from.




Probably. Much easier to launder something which can be spent anywhere and everywhere than something which can only be spent or converted to cash in a small handful of places, none of which will be able to accommodate the significant sums of money criminals will be trying to launder without KYC demands.
 

Kylian

New member
Liquidating the privacy coins into fiat cash is one of the biggest barrier to them because they can't stay completely anonymous while using internet at some point they will leave their traces which could be never erasable.And also not much of those criminals doesn't know the existence of cryptos that is why they prefer hard cash over banking transactions.
 

Darian

New member
Fiats are more easily accessible to people than cryptocurrencies, many people do not know what cryptocurrencies are while some only hear about it but know nothing about it. If we check the marketcap of the fiats in the world and compared it with cryptocurrencies marketcap, we will realize that cryptocurrencies are still way behind. People depends on fiat more than cryptocurrencies and many people do not even know that some cryptocurrencies are so anonymous like Moreno. Scammers like what their victims have, which are fiats

While dealing with fiats, there are transactions that can be untraceable, a good example is western union. Money sent through western union is not traceable, not only western union but also many others that works like that as well. Scammers also are wise and are perfect during their shady and malicious activities. That is why many of their fiat illegal deals can not be traced to them.

Even, I that knows about crypto, I do not still really know much, not to talk of scammers that knows less than me but good while dealing with what most people know, which is fiat. There was a scammers arrested by the United States FBI this year, there were transactions he has been making with just a single bitcoin address into his exchange account he his using, with this, all his transactions since 2016 to 2020 was revealed what a big mistake. So, many scammers of today like using fiats because it is what they are more perfect at.

Some do impersonate people, if they request cryptocurrencies from their victim, the victim may not know about how to use it, and they victim may not have any cryptocurrencies. Because of this, they will later request for fiat.

So, ignorance is what that is still causing this, when crypto adption increase and more known to the world, when people deal with it like fiats, scammers will learn more about it, knowing it deep down. Thereby, using it more for scam purposes.

I am not depicting cryptocurrencies as bad Also, people should learn how to avoid scam generally.
 

Alfonso

New member
Actually now a days I do believe that most of the people know about bitcoins , therefore if a person is planning something illegal he would certainly think about all the ways he can get it done perfectly.

Unfortunately fiat is most likely the biggest reason of corruption , the untraceable nature of the fiat makes it all together super easy to be smuggle , even mixing up fiat is quite easy.

The banks can store the data of all the cash with them but unfortunately they cannot individually track it if someone decides to spread it into a densely populated region..

But when it comes to cryptocurrencies.
They are good , they are private , they provide freedom to people BUT with regards to the KYC which is now mandatory for all the wallets , now you can very easily get tracked if you decide to commit some crime with bitcoins and other cryptocurrencies. There are mixing services but at the end of the day it can all be tracked.
 

Xzavier

New member
I have recently seen a few article on privacy coins and some crypto analysis service and it seems they were able to break some privacy coins tx although there was no Monero in the list. I don't know how much hard will it be for such analysts but I'm sure someday they will make it. Considering that, you know how much risky crypto is for criminal. Again, you can't remove the footprints by any means once you leave a sign.
I would say criminals are using fiat for their safety, crypto is risky for them.
 

Terrance

New member
I absolutely agree that using Monero is a safer way of transacting illegal monies of whatever sort. However you still have to unload the crypto somewhere for cash. If you unload a lot in to a bank, there are likely to be trigger that you'll set off and the transaction will be reported. Then if you buy anything with it over 10,000 , at least in the US, it gets reported. Then you have to be able to account for all the money if you get audited.. so that means you have to launder it which just makes it all the more difficult of a process. If you use cold hard cash, then there's no online paper trail. Technically notes have serial numbers and sometimes they can be tracked but that's if the government had something to do with those notes ( which wont be the case the vast majority of the time).
 

Grayson

New member
Well, fiat is the money that the world knows. It's the default money of everyone, good and bad, criminal or not. It is therefore common knowledge that fiat is also the preferred currency of the criminals.

There are, of course, those handful of criminals who are exposed to certain options such as Bitcoin and privacy cryptocurrencies. A lot of them are those who are dealing in the black markets accessible in dark and deep webs. But I guess the percentage of these criminals is very little compared to those who are in the open streets and in glass offices.

I bet only a small portion of the entire world's criminals is familiar with Bitcoin or crypto in general.
 

Jayden

New member
Currently the world is generally run under the fiat currency crypto is not controlled by the government there are many criminals who do not know anything about the use of crypto they are more inclined towards fiat currency due to lack of knowledge. Most of the criminal gangs do illegal business some of them specialize in providing money laundering services to the criminals, the process usually starts btc exchange for other digital currencies like teether. Stable is usually used to prevent quality fluctuations the funds are then exchanged for fiat currency to facilitate business.
 

John

New member
As of late, crypto has become extremely popular due to the negative effects of COVID-19 in the mainstream economy. People are starting to consider crypto to be a safe-haven against the traditional monetary system empowered by banks worldwide. Yet, the vast majority still relies on Fiat for day-to-day transactions because of its price stability and widespread acceptance in the mainstream world.
People consider toilet paper and canned food and hand sanitizers a safe haven in times of pandemic. Bitcoin is just a risky, speculative investment to anyone who isn't thinking that Bitcoin will replace banks anytime soon, which most don't do. You can see by how it started following the stock market during the initial shock from the pandemic. All what we have is just one big company saying that the believe that Bitcoin is a hedge, and that's all.
 

Wyatt

New member
If by any means criminals start adopting crypto in mass (especially privacy coins), we could expect a full government crackdown on the entire industry. Which is why I think it's best for criminals to continue using Fiat for the sake of the crypto/Blockchain industry's growth worldwide. But we'll never know what will happen in the future. Thoughts?
Huh
As long as Bitcoin is neutral, like it doesn't have anonymizer built into the protocol, the government doesn't have the reason to crackdown the network. Suppose this is the case for Monero et al., then yes. It was proven by the delisting of privacy coins in some regulated exchanges.

I'm not saying enhancing privacy = supporting criminals according to my belief, but that's the government's view about it. Criminals can use whatever MoE they want, but it is important not to encourage/promote such activities by tweaking the protocol to support them if we don't want any trouble with governments.
 

Henrik

New member
Fiat is still widely used in mainstream economy, they have effective ways to launder physical cash and if it works why fix it? This is the problem that bitcoin critics uses to levy against it, they always think that bitcoin or monero will be used for illicit purposes. There is no true anonymity in the Internet, the other reason criminal enterprise do not use it is they do not have a firm grasp yet on how blockchain and cryptocurrency in general works.
 
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