Home / Crypto Currency / ‘Fight Fire with Fire’: IMF Chief Lagarde Calls for Blockchain-Powered Bitcoin Regulation

‘Fight Fire with Fire’: IMF Chief Lagarde Calls for Blockchain-Powered Bitcoin Regulation


Christine Lagarde Cryptocurrencies

Advertisement

Get Trading Recommendations and Read Analysis on Hacked.com for just $39 per month.

The head of the International Monetary Fund (IMF) wants to start a blockchain arms race.

Christine Lagarde, the IMF’s managing director, wrote in a Tuesday blog post that she believes regulators can use blockchain or other distributed ledger technologies (DLT) to regulate Bitcoin and other cryptocurrencies and prevent them from being used in connection with money laundering and other financial crimes.

“The same reason crypto-assets—or what some people call crypto-currencies—are so appealing is also what makes them dangerous,” Lagarde wrote. “These digital offerings are typically built in a decentralized way and without the need for a central bank. This gives crypto-asset transactions an element of anonymity, much like cash transactions.”

Elsewhere in the post, which bears the ominous title “Addressing the Dark Side of the Crypto World,” Lagarde explained that she believes DLT and other digital technologies can be used by financial regulators across the globe to “communicate seamlessly” and create registries of customer information and digital signatures that would be linked to biometric information.

“Indeed, the same innovations that power crypto-assets can also help us regulate them,” she said. “To put it another way, we can fight fire with fire.”

Previously, Lagarde has said that cryptocurrency regulation is “inevitable” and has harped on this technology’s associations with illicit activities.

But though marketed as a way to combat terrorism and other nefarious activities, it’s easy — as Motherboard noted in its coverage of the proposal — to see Lagarde’s vision for a DLT-based surveillance platform leading to a “dystopian scenario” in which governments use DLT to track not only the movement of money but also people.

“As I have said before, it would not be wise to dismiss crypto-assets; we must welcome their potential but also recognize their risks,” Lagarde concluded. “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.”

Meanwhile, a growing number of regulators are calling for international coordination on cryptocurrency regulation. On Tuesday, Japan became the latest country to announce that it will formally call for G20 members to discuss international cryptocurrency regulations at the group’s upcoming finance summit.

Featured image from Shutterstock.

Follow us on Telegram.
Advertisement
Read more

Check Also

In Bear Market, Korea’s Biggest Crypto Project ICON Showed Solid Progress

A goodbye note from Deblock’s now-former Head of Research revealed the progress of their ICON blockchain project in all these months. And they looked extremely positive. As he left the company to pursue his startup, Markus Jun noted ICON as one of the very few blockchain projects that showed significant accomplishments despite staying inside a bleeding crypto market. “My time at Deblock and ICON coincided with one of the worst downturns in the cryptocurrency market. In spite of this, I can say that the ICON team has made incredible progress,” Markus wrote while asserting that their interoperable blockchain project till this date leads the South Korean blockchain industry. “I’ve seen ICON push for significant progress in legitimizing blockchain and cryptocurrencies with the Korean Government, receiving the Minister Award for being an industry leader in the blockchain space, and launching demonstrations and several projects in conjunction with the Seoul Metropolitan Government. I’ve seen several hires in every ICON department, including senior positions, most of which weren’t made public and the team is still actively hiring to this day.” Markus also brought focus to ICON’s international expansion stories, which included the launch of their global accelerator program ICONLOOP in partnership with the Singapore government, followed by its continuation in Tokyo and San Francisco. “Beyond this, there are ongoing efforts to expand ICX Station globally. All things considered, it’s clear that ICON isn’t letting the market downturn affect them in moving forward,” Markus explained. The said expansion is also bringing valuable partners to ICONLOOP. In addition to the Seoul government, ICON has gained support from LINE, Smilegate, Kyobo Insurance, and Jeju Island to develop blockchain solutions for them. It overall makes a long-term use-case for ICON’s ICX public network, indicating a stable growth for its native token ICX as well. Solvent after Crash At the time of the ICO, ICON’x ICX token sale raised close to 75,000 ETH. Their smart contract split the funds into 30 separate Ethereum wallets. Between December 2016 and November 2018, ICO team moved circa 70% of their funds to other portfolios – perhaps as part of a sale. After the post-ETH crash adjusments, the team holds around $5 million in ETH reserves. The figures prove that ICON is far from being insolvent at this time, in contrast to several other ICO projects that have either gone out of business or in a money crisis. Forrester Research’s chief analyst Martha Bennett predicts that a majority of these ICOs are heading towards an outright extinction in absence of users and funds. “Sooner or later, this would have led to a contraction anyway. The crypto crash acted as both catalyst and wake-up call.” Big crypto startups like Coinbase and ConsenSys have also laid off employees in the past two months, indicating that the crypto market, in general, is running out of money. ICON, with a provable business model and an increasing use-case among well-known organizations, could still survive the bloodbath owing to an actual demand for service. “I’ve seen the best of ICON in the worst of times. That’s why I’m confident ICON is here to stay,” Markus noted. The post In Bear Market, Korea’s Biggest Crypto Project ICON Showed Solid Progress appeared first on NewsBTC.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Disclaimer: Trading in bitcoins or other digital currencies carries a high level of risk and can result in the total loss of the invested capital. theonlinetech.org does not provide investment advice, but only reflects its own opinion. Please ensure that if you trade or invest in bitcoins or other digital currencies (for example, investing in cloud mining services) you fully understand the risks involved! Please also note that some external links are affiliate links.