Cryptocurrency or Usury? Crime and Alternative Money Laundering Techniques

23 Pages Posted: 19 Dec 2018

See all articles by Donato Masciandaro

Donato Masciandaro

Bocconi University - Department of Economics

Raffaella Barone

University of Salento - Department of Law

Date Written: December 2018

Abstract

The article presents a novel dynamic setting to compare old – usury – and new – cryptocurrency – money laundering techniques and uses it for calibration to shed light on their relative role as an effective device for the criminal organizations to clean their illegal revenues. The specialness of the usury contract depends on its role in laundering illegal revenues originating from criminal activities and it is independent from the interest rate level, while the cryptocurrency money laundering is associated with an initial coin offering (ICO) tool. The calibration compares the leverage effect on the overall capital owned by the criminal organizations triggered by the two money laundering techniques.

Keywords: CRIME, MONEY LAUNDERING, CRYPTOCURRENCY, USURY, BANKING

JEL Classification: K40, K42, K14, G18

Suggested Citation

Masciandaro, Donato and Barone, Raffaella, Cryptocurrency or Usury? Crime and Alternative Money Laundering Techniques (December 2018). BAFFI CAREFIN Centre Research Paper No. 2018-101. Available at SSRN: https://ssrn.com/abstract=3303871 or http://dx.doi.org/10.2139/ssrn.3303871

Donato Masciandaro (Contact Author)

Bocconi University - Department of Economics ( email )

Via Gobbi 5
Milan, 20136
Italy

Raffaella Barone

University of Salento - Department of Law ( email )

Campus Universitario - Via Li Tufi
LECCE, LE 73020
Italy

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