The IMF has always had some interesting opinions on Bitcoin and other cryptocurrencies. As of right now, Christine Lagarde is quite convinced they can’t regulate cryptocurrency. Instead, the IMF wants to use its native technology to fight crime. Blockchain analysis has become a booming business over the past few months. It now seems the Lagarde wants to embrace this technology to bring more legitimacy to this new form of money.
Cryptocurrencies do not have the best of reputations these days. This is especially true in the financial sector. The perceived anonymity of Bitcoin and altcoins has been a thorn in the side of regulators for quite some time now. Addressing these concerns is a lot easier said than done. Right now, it seems regulation is not the answer. This is mainly because it is impossible to regulate cryptocurrencies altogether. The IMF is the first major institution to realize how futile those efforts would be in the long run.
Christine Lagarde Supports Bitcoin Yet Again
Instead, Christine Lagarde aims to try a completely different approach. In her opinion, the IMF needs to “fight fire with fire”. More specifically, she wants to use blockchain analysis tools to track cryptocurrency users’ behavior. In doing so, the institution may help address any concerns regarding money laundering and tax evasion, among other crimes. This is not a ban on Bitcoin and altcoins by any means. In fact, it is the exact opposite. An initiative like this one will only bring more legitimacy to cryptocurrency as a whole.
Christine Lagarde sums it up as follows:
“Those who have a shared interest in maintaining safe online transactions need to be able to communicate seamlessly. The technology that enables instant global transactions could be used to create registries of standard, verified, customer information along with digital signatures. Better use of data by governments can also help free up resources for priority needs and reduce tax evasion, including evasion related to cross-border transactions.”
How all of this will play out, remains to be seen. As of right now, there is no unified course of action when it comes to handling cryptocurrencies. Lagarde seems to lean toward using AI, biometrics, and even cryptography itself. Weeding out the illicit players in this industry will be a major challenge. It is a positive move altogether, as this will bring more legitimacy to Bitcoin and altcoins. With the IMF seemingly supporting this form of money, interesting things are bound to happen in the future.
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