The IMF warned of a “dark side” of cryptocurrency.
The international monetary Fund (IMF) can play a Central role in the coordination of global regulation of the cryptocurrency market, says the managing Director of the IMF Christine Lagarde.
In her blog, she warned of a “dark side” of cryptocurrencies and the risks associated with this market.
“Despite the fact that the blockchain technology might radically change many sectors in addition to Finance, cryptocurrencies are a risk, particularly because they can be used as a tool of money laundering and financing of terrorism”, – said Lagarde.
“Of course, money laundering and financing of terrorism is only one area of risk. Another area is financial stability. The rapid growth of the cryptocurrency market, its high volatility and weakly expressed in the relationship with a traditional financial world can create a new vulnerability,” she said.
Christine Lagarde said the need for action in response to existing risks, noting that the IMF can play a Central role in this process.