The International Monetary Fund (IMF) is keen to explore the potential of cryptocurrencies and is urging regulators to cooperate on the matter. In a regular press briefing, the spokesperson for the organisation highlighted that cryptocurrencies might have potential benefits, but the surrounding risks remain.
Commenting on the issue, the IMF’s Communications Director, Gerry Rice, said: “Cryptocurrencies can have potential benefits, including the promotion of financial inclusion and more efficient payment and settlement processes.”
“But we have also alerted that cryptocurrencies can post considerable risks as potential vehicles for money laundering, terrorist financing, tax evasion and fraud. So, the bottom line, I think, we think greater international discussion and cooperation among regulators would be helpful,” he added.
The stance of the IMF on Bitcoin has not changed, as it is refraining from any comments on its value. Nevertheless, Mr. Rice mentioned in his comments on cryptos: “When asset prices go up quickly, risks can accumulate, particularly if market participants are borrowing money to buy those assets.”
“It is important for people to be aware of the risks and take the necessary risk management measures,” he explained.
Source: Finance Magnates
Trader Bozhidar Arabadzhiev
Original Post: IMF Urges Global Cooperation on Crypto: Sees Both Benefits and Risks
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