The US Senate discussed how cryptocurrencies can affect domestic elections

A security consultant addressing a group of US senators on Tuesday stated that cryptocurrencies are “tailor-made” for foreign powers to tamper in American elections.

The Director of threat analysis company, DarkTower was one of a number of witnesses to appear before the Senate Subcommittee on Crime and Terrorism. The topic of discussion was the possible use of cryptocurrencies by foreign agents operating with the aim of disrupting the US elections. Scott Dueweke argued that lawmakers must place an importance on identity solutions in order to prevent undue influence from foreign sources when it comes to the upcoming elections.

He said: “There is a global shell game being played now by people hoping to bypass financial disclosure rules.”

Dueweke believes that as a result of this, these entities are purchasing political advertisements and donating to particular parties and individuals in an effort to sway elections.

“They exchange one form of money for another … fiat currency in and fiat currency out, but in between, you’re going to have these multiple layers of cryptocurrency that are going to be impossible to track.”

Vice President of the Financial Integrity Network, David Murray also added that cryptos have the potential to be used by foreign entities to avoid being detected when making sizable donations to political parties. He compared using cryptocurrencies to the process of making donations through a financial institution:

In fact, Mr Murray stated that “when donors use financial intermediaries such as banks to execute donations, the location of the financial intermediary is a data point that campaigns can use to identify foreign donors.”

 

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