The head of the International monetary Fund (IMF) Christine Lagarde said that regulators should use blockchain technology to cope with possible threats, “which arose with the growth in popularity of cryptocurrency”.
The technology that formed the basis of a cryptocurrency can help us cope with them by regulation. In other words, we can fight fire with fire.
Lagarde believes that cryptocurrencies can create financial instability and to facilitate terrorism and money laundering, but it also argues that the technology of distributed registries and cryptography can be used by the international community to regulate this area.
According to her, the technology of distributed registers “can be used to speed up the exchange of information between market participants and regulators”.
It is impossible to maintain the security of the online transactions without the proper level of communication. Technology that allows you to make instant international transactions, can be used to create registries of customer information, the authenticity of which would be ensured with digital signatures. The use of this technology by governments can help them free up resources for higher priority needs, and to deal more effectively with tax evasion.
According to Lagarde, technologies such as AI, biometrics and the blockchain “can increase the level of digital security and to identify suspicious transactions in near real time. This will give law enforcement the ability to respond almost instantly.”
The views expressed in this blog post, largely in line with previous statements Lagarde on cryptocurrency, though, such rhetoric suggests that the IMF starts much more serious about the cryptocurrency than ever before.