Friday 18 June 2021

Digital Currency Worrisome For Costa Rican Authorities

640_Computer_mouse

The growing use of digital currency like Bitcoin is worrying Costa Rican authorities, warning that organized crime can make use of it to move millions of dollars without controls.

Digital currency, not to be confused with virtual currency, among its various names, is electronic money that acts as alternative currency. Currently, alternative digital currencies are not produced by government-endorsed central banks nor necessarily backed by a national currency.

- Advertisement -

One of the advantages of digital currency like Bitcoin — a cryptographic currency popular on the internet — is its anonymity. That means that, although it has plenty of legitimate uses, it is also favoured by of those who wish to buy drugs online, for example or keep their transactions away from the watchful eyes of authorities.

It differs from virtual money used in virtual economies due to its use in transactions with real goods and services; not being limited to circulation within online games. Earlier digital currencies are often backed by a promise to pay a set amount of gold or silver bullion in exchange for each of its units. Others float against whatever individuals are willing to exchange for it.

Unlike other currencies, digital currency like Bitcoin is not based on sovereign fiat or piles of metal. Rather, it relies on a cryptographic process that requires ever-increasing amounts of computational power to produce new units of the currency.

A cryptocurrency is a type of digital currency that relies on cryptography, usually alongside a proof-of-work scheme, in order to create and manage the currency. Cryptocurrencies are peer-to-peer and decentralized, and are currently all based on the first cryptocurrency, Bitcoin.

- Advertisement -

The entire thing is based on public-key cryptography, in which a combination of a freely-available “public key” and a secret “private key” allow each owner to keep his funds secure while enabling payments that are irreversible.

The anonymity of transactions was at work in the case of Costa Rica’s Liberty Reserve, a company linked to the largest money laundering operation in the world.

For Costa Rica’s financial regulator, the Superintendencia General de Entidades Financieras (Sugef), the increasing use of digital currency, like Bitcoin, is concerning as there is no “uniformity” on the methods to control it.

Digital currency can easily be used in money laundering, terrorist financing and even scams, like “pyramids” or ponzi schemes and the like, warn police authorities and financial experts in Costa Rica.  It could even have important implications in monetary variables for the economic stability of a country.

Francisco Segura, head of the Organismo de Investigación Judicial (OIJ) – Costa Rica’s judicial police body – told La Nacion that “behind the digital currency there are criminal organizations that trade in the black market”.

Segura added that the OIJ know of these movements, but so far there the only recorded case is that of Liberty Reserve.

- Advertisement -

For Carlos Alvarado, head of the Instituto Costarricense sobre Drogas (ICD) – Costa Rica’s Institute on drugs – the lack of regulation could lead people to losing everything overnight and with no support.

Worrisome to Costa Rica’s police authorities is not knowing who is making these types of transactions.

The growth of digital currency like Bitcoin is that more and more people these days experience their money transactions as numbers on a computer screen.

- Advertisement -

FACT CHECK:
We strive for accuracy in its reports. But if you see something that doesn’t look right, send us an email. The Q reviews and updates its content regularly to ensure it’s accuracy.

Ricohttp://www.theqmedia.com
"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

Cuba Plane Crash: Company ‘Had Safety Complaints’

Solidarity and investigations after the accident. Cuban authorities are investigating the...

The Volcanos Of Central America (By Country)

Among the things most loved by travelers to Central America is...

MOST READ

OIJ investigation into road works corruption leads to inquiries in Panama

QCOSTARICA - The prestige of the company of some of the richest men in Costa Rica hangs by a thread. For many, the MECO...

College of Physicians negotiates donation of a million and a half vaccines against covid-19

QCOSTARICA - This week there could be very good news for the country in the fight against the coronavirus pandemic if the College of...

Vaccination commission endorses J & J vaccine, says no to Sinovac

QCOSTARICA - The Comisión Nacional de Vacunación y Epidemiología (CNVE)  - National Vaccination and Epidemiology Commission - endorsed the use of Johnson and Johnson...

The Best Sports To Play On A Beach

Costa Rica has some of the best beaches in the world. The coastline is blessed with golden sand, beautiful palm trees, and perfect blue...

Rainy afternoons and nights this week in most of the country

QCOSTARICA - Characteristic of the rainy season, we will see rain in the afternoons and nights in the Central Valley, the entire Pacific coast,...

Your cell phone can now notify you if you had contact with a positive case of covid-19

QCOSTARICA - Fifteen months after the national emergency against covid-19 was declared, Costa Ricans will have a digital platform where you can be notified...

Heavy downpours generated the first phreatic eruption of this year at the Turrialba volcano

QCOSTARICA - Several residents of La Pastora, La Central and Monte Calas, in the vicinity of the Turrialba volcano, heard a loud rumbling early...

COVID vaccines in the workplace: Can I ask who got their shots?

(DW) Jon works for the local government in the US state of Virginia. The 40-year-old received both his COVID shots in April. Most of...

Today’s Vehicle Restriction: June 13, “EVENS”

Today, Sunday, June 13, only EVENS can circulate. The measure is countrywide and applied between 5:00 am and 9:00 pm, save for those under the...

WANT TO STAY UP TO DATE WITH THE LATEST!

Get our daily newsletter with the latest posts directly in your mailbox. Click on the subscribe and fill out the form. It's that simple!

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.