In a panel speech honoring Benoît Coeuré, a member of the executive board of the European Central Bank, Lael Brainard highlighted the perceived risks still posed by cryptocurrencies.

Brainard: crypto exchange security troubling
Specifically selected for the panel, which formed part of the “Monetary Policy: The Challenges Ahead” event in Frankfurt, Germany, was illicit activity involving Bitcoin.

According to Brainard, who cited an academic study from earlier this year, Bitcoin still contains a significant malicious user base.

“Only a third of the most popular exchanges require ID verification and proof of address to make a deposit or withdrawal. This is troubling, since a number of studies conclude that cryptocurrencies support a significant amount of illicit activity,” she told the audience.

Continuing, Brainard added that as much as 50% of all Bitcoin transactions were in some way conducted against the law:

“One study estimated that more than a quarter of bitcoin users and roughly half of bitcoin transactions, for example, are associated with illegal activity.”