Economist Gita Gopinath said on Tuesday that cryptocurrency legislation, including the GENIUS Act, will have limited success reducing illicit finance due to the large number of anonymous stablecoin holdings.
Stablecoins In Self-Custody: A Dark Spot?
Gopinath, at a lecture on the occasion of the Annual General Meeting of the Bank for International Settlements, pointed out that stablecoins are primarily held in their most anonymous form, a stark contrast to the preference for less anonymity in traditional money transactions.
While only about 7% of traditional money is held as cash, the most anonymous form, in the stablecoin ecosystem, Gopinath said, based on her research with co-authors.
In contrast, 70%-75% of USDC (CRYPTO: USDC) & USDT (CRYPTO: USDT) are held in self-custody wallets, the most anonymous form.
