The main technology associated with Cryptocurrency and NFTs is blockchain. There are many blockchains all with different purposes and functionalities, but they all have fundamental similarities:

  • There is a constant record of transactions that cannot be altered. 
  • Data added to the blockchain must be widely agreed. 
  • It is decentralized to protect it. 

These key features are some of the reasons why digital assets are so useful. The questions are What is the risk associated with it? What will this technology do for us? And how can we adopt it? 

According to the WiRC poll, there was consensus in opinion that money laundering takes place using cryptocurrency 

According to our panelists this is completely false!  

If you compare the two, banks are constantly fined for criminal activity with banks such as Westpac being fined upwards of one billion dollars. However, there has not been a crypto currency or exchange that has been fined for money laundering since 2015. Moreover, EuroPoll reports that the method of payment for money laundering is still cash.  

Furthermore, Professor Lisa Short stated “money laundering did not start with cryptocurrency” and points to the effects of scare mongering to socially engineer this opinion. 

The panelist concluded that cryptocurrency can in fact reduce money laundering. This Is because unlike cash, every transaction is traceable. Professor Lisa Short explained this by saying because cryptocurrency cannot be altered you cannot ‘rip a page out of the book’ like you can with traditional transactions accounts. 

Cryptocurrency can also help to reduce fraud. Companies and individuals can use NFTs as a digital representation of their assets. This data includes all contractable information and therefore assets cannot be ransom-able. Professor Lisa Short went on to make a prediction “moving forward you will find that assets will not be able to be insured unless there is a NFT that represents that particular asset”. This would eliminate the potential of fraud  

All the panelists expressed the importance of educating yourself. Dr Martha Boeckenfeld suggested that learning by doing Is most effective and this means you can begin to experience this technology. This can include investing a small amount using Coinbase for example. However,  the panelists highlighted that this is not a get rich quick scheme and all investors should act rationally because as we all know crypto can fluctuate rapidly. Ioana explained the importance of understanding the technology behind cryptocurrency, it is not just an investment but has lots of potential purposes and therefore it needs to be understood. 

Below are websites our panelists recommended to explore these ideas further:

Click the link below to watch the webinar  

WiRC – Crypto & NFTs; Opportunity & Risk (brighttalk.com) 

For further information about WiRC or to ask any questions to our experts please contact us via (1) Women in Risk & Control: Company Page Admin | LinkedIn 

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