Illegal Use of Bitcoin Dropped By 50% in 2020, Citibank Reports

Illegal Use of Bitcoin Dropped By 50% in 2020, Citibank Reports

Illegal use of Bitcoin fell from about $20 billion in 2019 to about $10 billion in 2020, according to a report released on Monday.That total represented only a small fraction of the overall volume of Bitcoin transactions, the report said — and that percentage decreased as well."In total, just over 2% of the activity in the cryptocurrency space was linked to illicit activity in 2019, and that total was down to only 0.3% in 2020," Citi Global Perspectives & Solutions (Citi GPS), a Citibank "thought product," said in a 108-page research report. "However, the extent of such activity can often seem overblown based on news headlines alone." A 'Citi' sign is displayed outside Citigroup Center near Citibank headquarters in Manhattan on December 5, 2012 in New York City.

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CIti GPS said that the volume of illegal use of Bitcoin was miniscule compared with fraud in established credit and debit systems handling government-issued fiat currencies."Security issues with cryptocurrency do occur," the report said, "but when compared to traditional payments, it performs better."Although the report foresaw a positive future for crypto, it made it clear that significant challenges remain."The entrance of institutional investors has sparked confidence in cryptocurrency, but