Today, Christine Lagarde, head of the International Monetary Fund published an interesting article about her opinion about cryptocurrencies. It was published on the same organism’s blog. Christine has been Minister of Economic Affairs of France, so her opinion on how to deal with the issue matters.
Using Blockchain To Secure Blockchain
In the article, she ponders about the present and the future of cryptocurrencies and advises on how to manage the downsides of crypto assets. The anonymous characteristic of the crypto operations is the most important element for criminals. Money laundering, tax evasion, terrorism funding and drug trafficking are all possible uses of a decentralized system like the ones crypto assets provide. She does not only alerts about the issue but also issues some concrete recommendations about how to address these problems.
“We can begin by focusing on policies that ensure financial integrity and protect consumers in the crypto world just as we have for the traditional financial sector. Indeed, the same innovations that power crypto-assets can also help us regulate them. To put it another way, we can fight fire with fire”
She proposes that exchanges share their information in a decentralized way with lawmakers and security in real time, using a blockchain to watch blockchains. This, with KYC politics in the mix, should be sufficient to prevent these kinds of uses. In this particular aspect, the global collaboration will be required. Even if one nation does not comply with these requirements, criminals can still make operations trough unregulated states.
Looking To The Future
Christine is adamant in making his point come across: “It would not be wise to dismiss crypto-assets; we must welcome their potential but also recognize their risks”. She has a critical look at the issue, looking at the volatility of the market and a possible collapse as an event that would affect nations worldwide. But also recognizes that blockchain tech and cryptocurrencies can be leveraged to aid people around the globe.