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Cryptocurrency or usury? Crime and alternative money laundering techniques

  • Raffaella Barone
  • Donato MasciandaroEmail author
Article

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 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 

Notes

Funding

Funding was provided by FIR projec (Grant No. DBLV3J3).

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Authors and Affiliations

  1. 1.Bocconi UniversityMilanItaly

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