Silver Lake Co-Founder Tells Davos Cash Is Used Far More in Crime Than Bitcoin

Glenn Hutchins said up to 90% of $100 bills are "used for organized crime and tax evasion."

AccessTimeIconJan 27, 2021 at 3:48 p.m. UTC
Updated Sep 14, 2021 at 11:02 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Glenn Hutchins, co-founder of global technology investment firm Silver Lake, countered the widely held view that bitcoin is mostly used for illicit activity when speaking at the World Economic Forum summit in Davos, Switzerland. 

  • Hutchins said the belief ignores the immutable nature of the blockchain technology underlying bitcoin, reported Finextra on Tuesday.
  • Bitcoin "leaves a permanent, unalterable record, hence why almost all criminals using it are caught. It is fundamentally wrong to say that bitcoin is mostly used for crime,” he said.
  • On the other hand, up to 90% of $100 bills are "used for organized crime and tax evasion" in the U.S., because cash is "untraceable and fungible," Hutchins said.
  • Indeed, as CoinDesk reported, blockchain sleuthing firm Chainalysis reported this month that criminal-linked activity made up just 0.34% of cryptocurrency transaction volume in 2020, down from 2.1% the year before.
  • Also speaking at Davos on Monday, Bank of England Governor Andrew Bailey took a more negative tone, arguing that digital innovation in payments is here to stay, but not cryptocurrency as it currently stands.
  • We're still waiting for the right design and governance model for a “lasting digital currency,” Bailey said.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


Read more about