International Monetary Fund Feels Crypto Trading Less Risky
John McAfee well calculated the effects of crypto trading, when he quoted, “You can’t stop things like Bitcoin. It will be everywhere and the world will have to readjust. World governments will have to readjust.”
The uncertainty and fast-paced changes in the global economy caused by crypto-assets is evident in the shifting perspective of the International Monetary Fund (IMF).
Christine Lagarde, IMF’s Managing Director recently in her post, “An even-handed approach to Crypto-assets”, talks about the potential benefits of Crypto trading and virtual currencies in the modern financial world. According to Christine Lagarde, “even-handed approach” towards Fintech can incentivize positive changes. The usage of decentralized applications (Dapps) will bring stability and will surely strengthen the present financial system.
Another post, “Addressing the dark side of the Crypto world”, Christine Lagarde analyses the threats posed by the crypto-assets some of which are price volatility of these assets, potential leveraged trading, money laundering over dark web among others. All these threats arise as a result of anonymity and decentralized nature of these crypto-assets. In her post, she wrote, “We need an even-handed regulatory agenda, one that protects against risks without discouraging innovations.” Here she advocates the need for regulations in the crypto world to ensure consumer protection and crime control. She urges the need for global cooperation in the regulation of cryptoassests. Christine Lagarde also made it clear that IMF isn’t against innovations and welcomes them with open arms.
This statement from the Managing Director of IMF comes months after the April 2018 Global Financial Stability Report (GFSR) where the different aspects of crypto-assets were discussed including their pros and cons. In spite of all controversies and loopholes against crypto finance world, the future seems to be promising, given its potential to influence centralized third-party financial institutes.
So let’s hope for progress and innovations to furnish growth in the modern world.