United States mulling over utilizing stablecoins for surveillance purposes
In the ever-evolving world of cryptocurrencies, the Bank for International Settlements (BIS) economists have taken a keen interest in the analysis of blockchain data to combat money laundering activities. On August 13, 2025, they published a piece titled "An approach to anti-money laundering compliance for cryptoassets."
The BIS proposal suggests creating an Anti-Money Laundering (AML) compliance score for cryptoassets based on the likelihood of transacted tokens' involvement in illicit activities. This score could potentially be used to block or limit transactions in the crypto-to-fiat conversions through banks.
While USD stablecoins are often presented as a private alternative to Central Bank Digital Currencies (CBDCs), it appears that the U.S. government has a different perspective. The government, concerned about financial stability and illicit activities, is attempting to gain approval for monitoring stablecoin transaction data. This move seems to indicate a willingness to employ cryptocurrencies as a tool for financial surveillance.
The development, issuance, and circulation of the digital dollar were prohibited by President Donald Trump via executive order on January 23, 2025. However, stablecoins, which are not directly affiliated with the government, remain a significant player in the cryptocurrency market.
The implementation of digital IDs for blockchain-based services, as suggested by some, could potentially turn permissionless networks into permissioned ones. The Rage journalist, Lola Leetz, has voiced this concern, suggesting a shift towards a more regulated cryptocurrency landscape.
In the realm of comparisons, ZeroHedge media has drawn parallels between the AML compliance score and China's social credit points, highlighting the potential for increased surveillance and control in the digital economy.
As we navigate this new frontier, it's clear that the regulatory landscape for cryptocurrencies is a complex and evolving one. The balance between privacy, financial stability, and the fight against illicit activities will continue to be a key focus for policymakers and regulators worldwide.
