IMF Calls for International Cooperation on Crypto.
The International Monetary Fund (IMF), an organization of the United Nations that aims to foster global monetary cooperation and financial stability, has called for global coordination on cryptocurrencies, warning of the risks of surging cryptocurrency prices.
According to a Bloomberg report, IMF spokesman Gerry Rice said late last week there is a need for “greater international discussion and cooperation among regulators.”
“When asset prices go up quickly, risks can accumulate, particularly if market participants are borrowing money to buy. It’s important for people to be aware of the risks and take the necessary risk-management measures.”
The spokesman also stressed that cryptocurrencies pose dangers beyond investors’ losses, and can potentially be used for money laundering, terrorist financing, tax evasion and fraud. These arguments sound a bit unreal, for example, money laundering has decades of existence, some countries create the conditions so that they are not persecuted, many ill-avid riches do not investigate them, they do not have due process, in the end there are no culprits. On the other hand, when we talk about the financing of terrorism, we have to see in fact from when this phenomenon exists, and it is not through the cryptocurrencies that it hides, there is a blockchain book that registers all the transactions.
Also, when mentioning the non-payment of taxes, we must not forget that the tax havens were not created by the cryptocurrencies, when the tax evaders arose, the big financial banks created the tax havens, they have a physical infrastructure they operate with the permits and governments do not forbid them. The fraud is as old as the civilization itself, the deception was born with individualism, that means with humanity, therefore the cryptocurrencies are not to blame for the deviations of man.
Previously, the IMF has advocated a balanced approach on cryptocurrency regulation. Christine Lagarde, managing director of the organization, said in September of 2017 that cryptocurrencies may give traditional government-issued currencies a “run for their money” and it is “not wise” to ignore them.
She added that cryptocurrencies would bring “massive disruptions” and warned that central banks and financial services need to pay closer attention to the technology.
The latest statements from the IMF come after U.S. Treasury Secretary Steven Mnuchin said last week that the Financial Stability Oversight Council has formed a working group to carry out discussion with other U.S. regulators. The group is “very focused” on cryptocurrencies, he said at the time.
“We want to make sure that bad people cannot use these currencies to do bad things,” Mnuchin added.
The important thing of all the above, is to know that the traditional financial economy is going through a period of instability, lack of credibility, the great financial powers, it would seem that they saw the problems created by these same powers, as if they had been initiated by the cryptocurrencies, cryptocurrencies emerge and burst because of the bad practice of giant banks that absorb wealth, and one of the ways is with inflation, which is induced to society.
The blockchain-bitcoin technology, is the response of a group or a person, after the financial bubble of 2008, emerged as a way to protect the heritage of people who want to participate in the wealth they produce, apparently, great events are coming or approaching, against cryptocurrencies, voices are heard that want regulation, others want to prohibit them, there are countries that promote them, while the great powers see their growth and acceptance as a threat to traditional financial systems. Events in full development can and will tell where the path of cryptocurrencies is. It waits for new ads.
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