International Monetary Fund (IMF) declares crypto trading is not risky

Christine Lagarde is a notable lawyer and politician. She is currently serving as the Managing Director of the International Monetary Fund since her re-appointment in 2016. Lagarde held various powerful ministerial positions in the French government. She was ranked 8th in Forbes’s World’s 100 Most Powerful Women list, 2017.

In her post,” An Even-handed Approach to Crypto-Assets”, she talks about the potential benefits of crypto trading. Lagarde carefully listed the benefits of virtual currencies in the modern world. DLT (Distributed Ledger Technology) is a potent medium which can bring about changes in the existing financial system. The Australian Securities Exchange already plans to use DLT for managing equity transactions. DLT can also be used for securely storing records.

She conveys that an “even-handed approach” towards Fintech can spur positive changes. The usage of decentralized applications will create a more balanced and robust financial system. Lagarde also notes that cryptoassets may pose serious risks if they become more mainstream. The price volatility, potential leveraged trading etc associated with crypto trading cannot be neglected. She advocates the need for global cooperation in the regulation of cryptoassets.

In another blog post, “Addressing the Dark Side of the Crypto World,” she analyzed the threats that come with crypto-assets. Given the anonymity and decentralized nature of cryptoassets, they could be used as vehicles for money laundering. She cited the shutting down of a darknet marketplace, Alphabay, which had exchanged more than $1 billion through crypto. She affirmed the need for regulatory technology in the crypto world for shutting criminals and protecting consumers.