In a recent blog post IMF Chief Christine Lagarde wrote, crypto-currencies ‘are typically built in a decentralized way and without the need for a central bank. This gives crypto-asset transactions an element of anonymity’. It’s bad as it opens ways for ‘money laundering and the financing of terrorism’.
But she acknowledges crypto-world is an ‘evolving challenge’ and to control the vulnerabilities proper ‘regulatory frameworks’ should be drawn.
Image credit: annca (Source: Pixabay)
The most interesting point is: ‘The technology behind these assets—including blockchain—is an exciting advancement that could help revolutionize fields beyond finance. It could, for example, power financial inclusion by providing new, low-cost payment methods to those who lack bank accounts and in the process empower millions in low-income countries.’
So there is a huge beneficial side of crypto currencies.
The IMF Chief concludes ‘it would not be wise to dismiss crypto-assets; we must welcome their potential but also recognize their risks.’
Now come to the point: while Warren Buffet and Bill Gates are warning against investing in crypto currencies, and Facebook and Google are banning ads for cryptos, hackers are stealing millions from crypto exchanges but still the Chief of one of World’s top financial bodies finds some potentials in this new sector.
I guess the answer is already given here.