IMF head proposes to fight cryptocurrency crime using blockchain
International Monetary Fund head Christine Lagarde believes regulators should use blockchain to cope with the “danger that comes with promises” associated with cryptocurrencies.
“The same innovation that empowers crypto assets can help us regulate them. In other words, we will beat the enemy with his own weapon, ”Lagarde wrote on the IMF blog.
Lagarde argues that cryptocurrencies can cause financial instability, as well as be used to finance terrorism and money laundering. Regulators should use distributed ledger technology and cryptography globally, she says..
In particular, distributed ledger technology can be used to “accelerate the dissemination of information between market participants and regulators”.
“Those interested in keeping online transactions secure should have the means to communicate seamlessly. Technology that allows instant transactions on a global level can be used for creating standardized and verified registries of customer data containing digital signatures. Learning to better manage data by governments will help free up resources for priorities and reduce the risks of tax evasion, ”writes Lagarde..
She also called for the use of cryptography, AI and biometrics to “eliminate the ‘pollution’ that the cryptocurrency ecosystem carries”.
According to Lagarde, the use of these technologies “can improve digital security and allow detecting suspicious transactions in near real time.”.
The thoughts outlined by the head of the IMF this Tuesday are consistent with her previous comments on cryptocurrencies. Lagarde has repeatedly made it clear that sooner or later the IMF intends to intervene in the cryptocurrency industry..
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