The continued growth of the cryptocurrency and NFT sector is making many people nervous. Among them is Israeli Finance Minister Avigdor Lieberman, who recently publicly addressed his concerns. The main concern is the implications of these mechanisms on the global war against money laundering and, of course, on activities in the institutional financial system.
These concerns are justified. These new technologies, all based on blockchain, enable the creation of transferable digital currencies independent of a central third party (some would say centralized) that organizes and monitors the mechanism.
Imagine you bought a ticket to a football game via the internet. The vendor sends you the ticket as a JPG or PDF file by email. The file contains a barcode, which the guard scans at the entrance to the stadium. This allows entry to the holder of the printed file. If you wanted to, you could print the ticket dozens of times, for free. Later, you could sell it to an unlimited number of people. After the guard (the third party) scans the barcode, the first person to come to the gate with a printed ticket is allowed entry to the game. The rest of the ticket buyers are stuck with worthless pieces of paper.