Political corruption traditionally calls to mind a paper trail of shady contracts and backroom deals.
But University of Michigan business law expert Will Thomas argues cryptocurrency is opening the door to a whole new system of corruption: a crypto kleptocracy.
Because the transactions are automated, there's often no record. Current bribery laws are basically becoming obsolete because they're looking for a classic quid pro quo that crypto just doesn't need to function.
Thomas, assistant professor of business law at U-M's Ross School of Business, shares his research-co-authored with Jeffery Zhang, assistant professor at U-M's Law School-and insights on the latest episode of the Business & Society podcast. He explores and explains how digital assets are reshaping the U.S. political landscape and how crypto ventures are being used to eclipse traditional wealth-building.
"If we think back to sort of the very traditional kind of corruption, right? Usually, we think of bribes: I give a politician some money, and in exchange, they do a favor," Thomas said. "For me, it's that sort of personal gain for the politician at the expense of the public. What crypto assets do is they break that traditional narrative. They break that causal chain between what I give you and what you give me."
Business & Society is co-produced by Judi Melena Smelser of the Ross School of Business and Jeff Karoub of the Michigan News office. The audio engineer is Jonah Brockman. Listen to all episodes of the podcast.
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