- Brian Armstrong has reacted to claims that its blockchain analytics software called Coinbase analytics is being sold to the United States government.
- It was well reported that the platform was said to have signed a contract with the Secret Service in order to provide the agency with his project analytics software for a period of four years.
The co-founder of one of the biggest crypto platforms in the industry Coinbase, Brian Armstrong has reacted to claims that it’s blockchain analytics software called Coinbase analytics is being sold to the United States government. It was well reported throughout the industry that the crypto platform was said to have signed a contract worth more than $180,000 with the United States Secret Service in order to provide the agency with his blockchain analytics software for a period of four years. Maybe this is where the rumours stem from?
In order to clarify The situation, Armstrong explained on Twitter that the involvement of Coinbase with the US government will be most beneficial for the growth and adoption of the overall crypto space.
It's expensive to build this capability, and we want to recoup costs. There is an existing market for blockchain analytics software, so we sell it to a handful of folks as well. It also helps us build relationships with law enforcement which is important to growing crypto.— Brian Armstrong (@brian_armstrong) July 12, 2020
Armstrong quickly went on to explain that the software is necessary for centralised platforms that are connected to traditional banks and financial institutions. Through this, these platforms are required to abide by the anti-money laundering policies that mandate exchanges to adopt the use of analytics software for tracking and monitoring customer transactions.
Armstrong further explained that the demand for blockchain analytics software is growing every day. With this in mind, Coinbase intends to bridge the gap between traditional institutions and the crypto space to its partnership with national law-enforcement agencies.
Over the weekend, around a similar time of his above tweet, Armstrong explained that transactions can still be tracked on blockchains that are made public.
He further states:
Whether Coinbase sells blockchain analytics software or not, transactions on public blockchains are still traceable by any number of people out there.— Brian Armstrong (@brian_armstrong) July 12, 2020