International Monetary Fund (IMF) chief Christine Lagarde said that it’s “only a matter of time before cryptocurrencies come under government regulation.”
“It’s inevitable,” she said, and added that it’s clearly a “domain where we need international regulation and proper supervision.”
According to Lagarde, IMF is definitely trying to stop digital currencies from being used to launder money or finance terrorism.
Regulators should, in her opinion, focus less on entities, and more on activities. That means knowing who is doing what, and whether those personas are properly licensed and supervised. “We need to move to regulations of activities, not entities, because it’s not going to be about the banks, and it’s not going to be about the insurance,” she stated. “We have to anticipate where the next crisis will come from. Will it be the shadow banking? Will it be cryptocurrencies rising to the sky? Asset prices have gone up massively; durably, and we all agreed, at that time, that there had to be a market correction,” she said.
Lagarde seems to agree with French Finance Minister Bruno Le Maire, German acting finance chief Peter Altmaier, Banque de France head Francois Villeroy de Galhau and Bundesbank President Jens Weidmann who had recently sent a letter to their G20 colleagues stressing the need for digital tokens regulation and the dangers that can come from cryptocurrencies.
Don’t forget that in October last year, Christine Lagarde stated that central banks and banking providers should start taking cryptocurrencies seriously.
Lagarde was at that times speaking at the IMF Annual Meetings in Washington D.C when she said global financial giants risk being blindsided by new financial innovations like cryptocurrencies.
“I think that we are about to see massive disruptions and I think we should just be aware of not categorizing anything that has to do with digital currencies in those speculation, ponzi-like schemes. It’s a lot more than that as well” she then said.