The managing director of the International Monetary Fund (IMF) has issued new feedback on cryptocurrencies and distributed ledger tech (DLT).
In a speech today at a Financial Action Task Force (FATF) plenary assembly, Christine Lagarde talked broadly about how her group is looking for to fight cash laundering and terrorist financing, noting that blockchain improvements may very well be each a protection in opposition to these points, as nicely as a device that permits them.
“Of course, fintech is a double-edged sword. It can be used to promote and fund terrorism, including through the anonymity of virtual currencies. But it can also be a powerful tool to strengthen our defenses against the financing of terrorism,” Lagarde remarked.
Described as the expertise that underpins digital currencies, DLT was framed in distinction as a expertise that might make the monetary system extra resilient in opposition to assaults, particularly the usage of computer systems to unfold worry by means of cyber-terrorism.
Lagarde instructed the viewers:
“This technology is less vulnerable to a single point of failure and could prove resilient to cyberattacks because the ledger – or record of transactions – exists in multiple copies.”
Lagarde went on to focus on a brand new analysis word the IMF issued this week, during which its researchers mentioned matters together with central bank-issued digital currencies and preliminary coin choices (ICOs), amongst different ideas.
For extra on the IMF’s current work, read our full coverage of its latest report.
Christine Lagarde image by way of Shutterstock
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