IMF Head Calls for Using Blockchain Against Bitcoin
March 14, 2018
Christine Lagarde, the IMF’s managing director, has claimed, bitcoin needs strict policing and the technology underlying cryptocurrency may help here.
Lagarde wrote in her post published at the organization’s website, countries’ authorities around the globe are able to keep cryptocurrencies’ potential in check and put them under control. She added, any delay in this situation may lead to money laundering and financing terrorism.
“By working together, and leveraging technology for the public good, we can harness the potential of crypto-assets while ensuring that they never become a haven for illegal activity or a source of financial vulnerability”.
Lagarde has mentioned, new cryptocurrency-related technologies including blockchain can turn the financial services industry upside down by providing cheap ways of transactions for those with no bank accounts, yet at the same time it promises both hope and threat.
As the IMF head put it, extreme volatility of cryptocurrencies as well as their undefined status within the traditional financial system can cause new vulnerabilities.
“It would not be wise to dismiss crypto-assets; we must welcome their potential but also recognize their risks”.
Remember, this was not the first time the IMF head spoke on the topic of cryptocurrencies. In October last year Lagarde claimed, they do not threaten the banking system, while in February she noted, global crypto regulation is inevitable.