International Monetary Fund: Cryptocurrency trading is not risky
The global economy is changing at an unbelievable pace and so is the outlook and attitudes towards cryptocurrency. Recently, the managing director (MD) of the International Monetary Fund (IMF), Christine Lagarde, showed how the attitudes are towards cryptoassets and all types of virtual currencies.
The post, titled ‘An Even-handed Approach to Crypto-Assets’, concentrates on the future benefits of trading in cryptocurrencies. The IMF MD vividly portrays what value the virtual currencies hold in modern time, according to Medium.
Lagarde spoke about the Distributed Ledger Technology (DLT), which has the potential to bring a fresh air of change in the contemporary financial system. Implementation of DLT is being considered by the Australian Securities Exchange to control its equity transaction; DLT can also be utilized for storing and safeguarding records.
A notable lawyer and politician, Lagarde opined for an even-approach towards Fintech to bring positive changes. A more balanced and robust financial system can be built with the help of decentralized applications.
Though Bitcoin has been rejected by financial bigwigs like Jamie Dimon (CEO, JPMorgan Chase) and Ray Dalio (Billionaire investor), hope is not yet over for cryptocurrencies. The recent stance of Christine Lagarde conveys the same. She says, “…we need an even-handed regulatory agenda, one that protects against risks without discouraging innovation.”
The IMF chief warns not to mainstream the cryptocurrencies as it might lead to serious security threats. One should keep in mind the price volatility and probable leveraged trading associated with crypto trading. A strong global cooperation is the only solution to regulate the cryptoassets.
Lagarde, who ranked 8thin Forbes’ World’s Most Powerful Women List in 2017, minutely analyses the future threats in cryptoassets in a separate blog post titled ‘Addressing the Dark Side of the Crypto World’. She wrote about how cryptoassets can be used as pawns to siphon off money, given the anonymity and decentralization associated with them. To establish her point, Lagarte cites the closing down of Alphabay, a dark net marketplace with transactions over $1 billion in crypto and vouched for a proper regulation to eliminate offenders and shielding consumers.
Under the chapter ‘A Bumpy Road Ahead’ in Global Financial Stability Report (GFSR) of April 2018, the pros and cons surrounding cryptoassets becomes clear. It says, cryptos have the capability to unite benefits of commodities and traditional market but frauds associated with it have also been given weightage. But given the present share of crypto (below 3 percent) in the global market, there is nothing to be worried about their possible threats.
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