I believe people that know about cryptocurrencies should focus on these while saying cryptocurrencies are used for for terrorism financing, money laundering and drug peddling. Although, pseudonymous cryptocurrencies can raise a concern but not like anonymous coins, that is why some exchanges are delisting anonymous cryptocurrencies, because their transactions can not be tracked.
The International Monetary Fund has called for caution in the use of cryptocurrencies, describing it as a concern. It disclosed this during a virtual briefing on the recently published 2020 Article IV IMF Staff Report for Nigeria. The Resident Representative of IMF for Nigeria, Ari Aisen, said the concern on the use of cryptocurrencies was why many central banks were cautious about the development.
“That is why some central banks, not only in Nigeria, have these concerns about what kind of activities these cryptocurrencies are put and how best to monitor those activities.” Aisen noted that some of the activities might be illegal or related to money laundering and drug peddling.
Is the above quote meaningful? I do not see it meaningful at all. Some people are not concerned about privacy and make use of exchange for crypto purchase, while many providing kyc all because exchanges are making it mandatory to do. Many people do not like exchanges because they are making people not to have privacy. Is it not proper for the government to have laws that will make exchanges be able to track crypto transactions rather than banning it. That is why I like countries like USA that do not ban cryptocurrencies but regulating it. As fiat is, it is most used in all these (terrorism financing, money laundering and drug peddling).
Central banks that ban bitcoin only encouraging p2p.
Governments are old-fashioned in the ideas. They want to be the one that controls everyone and everything in their borders. Even without cryptocurrencies, they cannot accomplish their goals. There will be always someone or something that will work without the government knowing. They put their inability of monitoring actions in the country to the cryptocurrencies. Banning or regulating will not decrease malicious actions. People will always find other ways to work secretly. However, cryptocurrencies are not created for working secretly or for malicious parties. The blockchain is public and you can see who paid to whom. But in traditional finance, we cannot see which malicious acts happen currently. Bitcoin is futuristic let's see whether they change their minds.