Think of HSBC as a private record of its customers transactions – a private ledger owned by HSBC. Think of Bitcoin as a transparent bank where every transaction is reported and verified by thousands of computers all plugged together.
HSBC relays on regulations and honesty of bankers. Bitcoin publishes everything but it keeps tha users identity anonymous for security and is regulated by maths.
Which is susceptible to more criminal activity?
To answer that question here is a recent documentary I was interviewd for on the HSBC scandals and what happens when you rely on regulations to prevent private ledger crime.
Money laundering is a private ledger problem, yet the press focuses on how Bitcoin is a tool for money laundering even though it is a transparent ledger.
The problem with private ledgers is who regulates the regulator and can we rely on regulations to keep banks honest?
Share your thoughts…Simon Dixon