For many years I have been telling people that cryptocurrency is a modern form of blood diamonds.
One of the important lessons of Nazi Germany and its spin-off regimes like the South African apartheid government (for example, two countries from which Peter Thiel hails) is that money laundering can be a powerful means of escape global sanctions against rights violations (e.g. how Peter Thiel made his fortune at PayPal).
It should therefore be obvious from history class that cryptocurrency serves a well-known anti-humanitarian scheme. Or maybe it’s easier to see the problem as popularized in “fascist pig” movies and books.
He has vices. It has no real virtues. If you think James Bond is a fascist pig, then Fleming seems largely on your side.
A long time ago a bank that ran a large regional power company (common in America) called me to consult on security as ethical. Their risk team asked me if they should approve a plan for excess power generation during idle production to be poured into an onsite bitcoin mining operation.
My answer was a simple question: “Do you really want to fund the development of ICBMs in North Korea?” I guess I could have asked if they wanted to spawn more fascist hogs.
The bank seemed genuinely surprised, which reminded me of the Sierra Leone Lyrics…
I thought my piece of Jesus was so harmless
until i saw a picture of an armless shorty
They asked a few questions, thanked me for explaining the international story, and said they had to reject the plan.
Fast forward to today and more and more evidence of the problem is finally reach the news.
North Korea has used crypto to navigate its way through the pandemic. The isolated country continues to find ways to evade sanctions and generate revenue while operating on the fringes of the global financial system.
To be fair, diamonds for money laundering are only the beginning of the problem… the laundered money is used for bleached technology sold by americans.
That’s why I often remind people The American NRA played a vital role in South Africa by importing firearms to support the illegal white police state in direct violation of international sanctions.
Now, who is the digital NRA?
So maybe you think of crypto even more like digital blood diamonds to buy digital weapons, like access to a Tesla’s algorithms to kill people in militarization of cars.
As I’ve said in my presentations for at least a decade, it’s much easier these days to steer 40,000 “driverless” vehicles lying around (really ammo) to destroy a city than to launch missiles from afar.