The International Monetary Fund Praises Cryptocurrencies

News and Analysis

The International Monetary Fund issued a report praising the benefits of virtual currencies, and stating they are here to stay.

The statement comes in contrast with the scandalous statements by Mike Hearn, which earlier claimed bitcoin failed.

In a statement accompanying the report, the Managing Director of IMF Christine Lagarde said:

“Virtual currencies and their underlying technologies can provide faster and cheaper financial services, and can become a powerful tool for deepening financial inclusion in the developing world. The challenge will be how to reap all these benefits and at the same time prevent illegal uses, such as money laundering, terror financing, fraud and even circumvention of capital controls.”

However, not every member of the IMF shares this vision. Russia, for instance, considers banning cryptocurrencies, or even introducing a criminal operations therewith. Some Russian officials still believe that cryptocurrencies should be rather regulated than banned.

According to the report that was presented at the World Economic forum in Davos, “the ability to securely carry out transactions without central oversight, known as blockchain technology, could reduce costs of international transfers, shorten wait times and enable smart contracts.”

The report also calls for a more redetermined approach in terms of regulation.

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