International Monetary Fund (IMF) Director Says Bitcoin Poses No Immediate Danger
IMF Managing Director Says Cryptocurrencies Do Not Pose Immediate Danger
One of the most important financial institutions around the world, the International Monetary Fund (IMF), says that cryptocurrencies do not pose an immediate danger for the economy.
The Managing Director of the financial institution urged players in the market to start embracing cryptocurrencies since they could transform the way in which people save and invest.
Christine Lagarde said that few technologies from the dot-com era were able to transform millions of lifes. And she believes that those virtual currencies that survive could also have an impact on people and their financial life.
During the 2018 Spring Meeting of the IMF and the World Bank Group, she said:
“That is why policymakers should keep an open mind and work toward an even handed regulatory framework that minimizes risks while allowing the creative process to bear fruit.”
There are more than 1900 different cryptocurrencies and each of them has different functionalities. However, she mentioned that it is important for regulators to be vigilant, since leverage trading is very risky and could increase the transmission of economic shocks.
Furthermore, she warned banks and other financial institutions that they would have to adapt their current business models and move towards crypto-assets.
Additionally, she explained that if crypto assets want to transform financial activities, then, they would have to earn the confidence and support from local authorities. And then she said that international cooperation will be essential to achieve that. During the event she said:
“An important initial step will be to reach a consensus within the global regulatory community on the role crypto-assets should play. Because crypto-assets know no boundaries, international cooperation will be essential.”
The IMF wants to work as a key player offering a place for discussion and collaboration in the development of a consistent regulatory approach.