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Chuck Schumer wants you to keep your receipts…

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From New York Democratic Senator Charles Schumer

“They prevent people from tracking the financial end of this. Using real money, users purchase Bitcoins, which can be traded at $9 to one Bitcoin and use them as proxy for real money when they buy things on Silk Road. It’s an online form of money laundering used to disuse the source of the money and disuse who’s both selling and buying the drug.”

Gawker broke the news on The Silk Road last week – exposing the deep web’s eBay-for-drugs site. Fine, drugs are illegal, despite the drug war clearly having failed. If he wants to continue to argue drugs are the society-destroying evil the state seems to think they are, fine. Quite honestly, I’d expect no less.

But Sen. Schumer clearly has very little understanding of…well…how cash works. Aside from the face-to-face interactions it takes to buy things with cash, there are few ways to track exactly who is buying what from who with cash. Sen. Schumer does little to distinguish Bitcoins from the multitude of community currencies used across the country, except that Bitcoins can be used to buy stuff Sen. Schumer doesn’t like.

Unless Williamsburg coke dealers take Brooklyn Greenbacks.

So…we get more drug war paranoia, except this time its online in your TOR networks…


Written by Matt

June 9, 2011 at 1:36 pm