IMF Director: Bitcoin & Kryptos can shake up the System
Home News IMF Director: Bitcoin & Kryptos allows the System to shake
Marcel Knobloch –
Crypto is a growing, currencies and much used Alternative to the current banking system, whose distribution is growing every day. For a long time were taken by the Central banks and the IMF stance is that Bitcoin and co. do not represent any danger for the established System. In an Interview last week, she speaks of “interference factors” have significant effects.
The Chairman of the international monetary Fund (IMF), Christine Lagarde, stated clearly that crypto currencies are the “interference factors” that shake up the current financial system and a potentially double-sided effect. Authorities around the world need to move quickly “to keep disruptive” technologies in the eye, so that the stability of the global banking system is not affected.
Lagarde said Wednesday at the spring meetings of the IMF in Washington DC and resulted in a panel session on the current development of monetary systems (freely translated):
I think the role of the disruptors and everything that uses the distributed Ledger technology, whether you currencies, this is crypto, Assets, or whatever … the System clearly falter. We don’t want any Innovation that would shake up the System so much that we would lose the required stability.
This statement shows without doubt that the IMF sees in some of the digital Assets such as Bitcoin, a threat to the traditional financial system. Lagarde called for a timely regulation and Monitoring, which is already being discussed in the European Parliament and elaborated. Last November, the European Central Bank (ECB) is a service, similar to the transfer of technology of Ripple, with the name of the Target Payment Settlement (TIPS) on the way that banks in the Euro area, it allows for the immediate Transfer to a very low cost. Technology companies are translated to new in the financial sector (free):
must be held accountable, so that you can be fully trusted.
The banking giant JP Morgan recently launched its own digital Asset that only its institutional customers is available and currently is piloted. Lagarde urges Central banks to consider to develop their own digital Assets. Furthermore, the IMF has launched, in cooperation with the world Bank a joint project with the name “Learing Coin”. This Coin is tested on a private Blockchain, which is only within the IMF and he world Bank. In this case, both companies should get to know the advantages of the Blockchain technology. The IMF describes the project as follows (freely translated):
The development of crypto-Assets, and the technology for distributed Ledger is developing rapidly, as well as the amount of information (both neutral as well as beyond suspicion) that surround it. This forces Central banks, Supervisory authorities and financial institutions, a growing knowledge gap between legislators, policy-makers, to recognize the Economists and the technology.
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