U.S Government is Working on 'Comprehensive Strategy' for Crypto

According to the deputy attorney general of the U.S., the government is working on a "comprehensive strategy" around cryptocurrencies  
28 February 2018   136

During the Financial Services Roundtable's spring conference Rod Rosenstein was asked about his views on cryptocurrency and cybercrime. Apart from the answer to the question, he also referred to a cybercrime task force unveiled last week by the Justice Department.

A lot of these schemes involve bitcoin and other cryptocurrencies which do not flow through the traditional financial system. What we're working on now with our cybercrime task force is a working on a comprehensive strategy to deal with that.

Rod Rosenstein

Deputy Attorney General for the United States Department of Justice

He also noted that cryptocurrencies are not fully anonymous, they are, rather, pseudonymous. The laundering process leaves clues for federal investigators to follow to the source. Criminals will always leave trails. Even when dealing with cryptocurrency, criminals are going to want to convert, launder it into physical currency, and so there are ways to trace these operations.

According to him, the key element of the Justice Department's efforts is educating federal officials on how the technology works and the strategies for following such digital trails.

20 % of University Students gain Cryptocurrency with Aid

The Student Loan Report along with Pollfish interviewed 1,000 university students with related loan debt
23 March 2018   157

It took them for 4 days to collect the data (from March, 16 till March, 20 of this year). All the participants were to ask the following question: Have you ever use student loan money to invest in cryptocurrencies like bitcoin?

The results were remarkable. The poll revealed that 21,2  % of current students with the loan debt have used aid money in order to fund a cryptocurrency investment. So, over one-fifth answered in the affirmative.

Drew Cloud, the leader of the Student Loan Report, clarified that the younger Americans are more active investors as they are rather optimistic about cryptocurrency. Therefore the students want to get involved in this subject in any way possible. Drew Cloud sincerely thought the percentage would be lower. He considers that any college student's budget is thin and limited, therefore some extra money may be used on rest, groceries, or books.

The Student Loan Report approved: student loan debtors would be to pull off such a manipulation as they are given their remaining loans to be used on “living expenses”. From time to time they borrow more than they end up needing for studies. College debtors`spending of the money is not officially tracked and this allows the leftover means to be spent in the way preferred by the student. Another important factor is loan debt payments often do not occur until after graduation, and generally 6 months after.

Mr. Cloud claimed that cryptocurrency was the most prevalent investment of 2017. The young Americans consider that digital money is a savvy way to spend their refund checks. Some students even suggest that they would be able to quickly pay their debts off (because “not long ago every virtual currency was experiencing seemingly unstoppable growth”).

A significant shortcoming from the survey are data concerning how much the average student of the university spent of their financial aid on cryptocurrency. It also would have been interesting to know what types of digital means students favoured.