IMF Calls for Cryptocurrency Cooperation Worldwide
January 22, 2018
The International Monetary Fund, the organization aimed at developing currency relations and maintaining financial stability, encourages all countries around the globe to collaborate with regard to cryptocurrencies yet warning against the risks their soaring prices may cause.
Last week Gerry Rice, the IMF Press Officer, stated that there is a need in fundamental discussion and cooperation among regulatory bodies at international scale.
“When asset prices go up quickly, risks can accumulate, particularly if market participants are borrowing money to buy. It’s important for people to be aware of the risks and take the necessary risk-management measures.”, Rice said
He also added, cryptocurrencies bear risks much greater than loss of investments, which is money laundering, terrorism financing, tax evasion and fraud.
The institution used to have more balanced approach before. Thus, at the end of September Christine Lagarde, the IMF Managing Director, claimed cryptocurrencies do not pose a threat to the central banks.
It is to be recalled that Steven Mnuchin, the US Secretary of the Treasury, called to international cryptocurrency collaboration some days ago and pointed the problem is to be discussed at the next G20 Summit. Similar ideas were sounded by Joachim Wuermeling, a board member in Bundesbank, who said Bitcoin must be regulated at the worldwide basis for single countries have limited authorities.