The International Monetary Fund (IMF) published a report outlining the implications of the development of cryptocurrencies and Blockchain technology. The document entitled Virtual Currencies and Beyond: Initial Considerations indicates that new technologies are generating changes in the world economy, explains the operation of Blockchain, its potential and the risks associated with the use of digital currencies; As well as how regulatory authorities should address them.
Virtual currencies go a long way before becoming the consumer payment system that it was hard to convince to use the credit card online. The difficulty grows when Bitcoin, his greatest exponent, has been involved in scams and irregularities. In the midst of this scenario, the IMF has given a vote of confidence to the virtual currencies with a working document in which it defends its virtues and insists on the need to understand the operation of this technology to be able to regulate its use and to protect the Users without repressing innovation.
The IMF asserts that cryptocurrencies combine properties of fiduciary currencies, commodities and payment systems and indicates that they can not be boxed under any of these terms. Its decentralized nature does not fit within the traditional regulations, therefore, it is necessary to establish new rules that manage risks in a balanced manner, and encourages cooperation between countries to create homogenous international regulatory frameworks that promote their use in a safe way.
This is the first time the Fund has analyzed a very slippery minority market, which is beyond the control of governments and central banks. Experts point out that the technology behind these currencies "offers benefits that go beyond the currencies themselves."
According to Christine Lagarde, Fund Manager, "Virtual currencies and their technology can provide faster and cheaper financial services and can become a powerful tool for deepening financial inclusion in a developing world. The challenge will be how to collect those fruits while preventing illegal uses such as money laundering, financing of terrorism and fraud. "
Despite the doubts, there are large amounts of these new currencies in circulation. NGOs, such as the Red Cross and Save the Children receive donations in cryptocurrencies, and investment bank Goldman Sachs invested $ 50 million in Circle, a Bitcoin-based venture.
The IMF concludes that digital currencies are at an early stage of development, making it difficult to determine where they are headed. This invites to the reflection and to studies and discussions on the evident and irreconcilable digitization of the money.
Sources: elpais.com | criptonoticias.com
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