Director of the International monetary Fund (IMF), Christine Lagarde (Christine Lagarde), said that regulators should use the technology of the blockchain to deal with «the dangers which exist along with the advantages of» cryptocurrency.
«The same innovation that lie at the core of cryptocurrency assets will help us to regulate them – one nail drives out another,» wrote Lagarde in a blog
The IMF on Tuesday.
Lagarde warned that crypto-currencies can provoke financial instability, but also to promote the funding of terrorism and money laundering. She argues that the technology of distributed registry and cryptography can be used in coordinated international initiatives to regulate.
According to her, technology is a distributed registry «can be used to speed up the exchange of information between market participants and regulators». Lagarde wrote:
«All parties interested in supporting secure online transactions, must be able to communicate freely. Technology that enables instant international transactions, can be used to create registries of standardized, validated customer information along with digital signatures. Competent use of data by governments will help release resources to address the priority issues and the fight against tax evasion, including cross-border payments».
Lagarde also noted that cryptography can be used to «clean the environment of crypto-currency assets», along with artificial intelligence and biometrics. According to her, these technologies «can strengthen digital security and to identify suspicious transactions in near real time. This will give law enforcement the ability to act quickly and stop the illegal transaction.»
The Director of the IMF also suggested that regulators should pay attention to the norms Group on combating money laundering and financing of terrorism (FATF) and financial stability Board to form their own rules.
Point of view is described in the blog, largely coincides with the previous comments
Lagarde on cryptocurrency and failing
ignored by the authorities. However, the serious tone of her statements may indicate what the IMF plans to intervene in the industry in the near future.