The International Monetary Fund (IMF) has expressed its intention to use its ongoing research and experiments in the blockchain as a basis to define a vector for regulating the industry.
During the panel discussion with Ripple CEO Brad Garlinghaus during the Singapore festival Fintech 2018, IMF Deputy General Counsel Ross Leckow spoke about areas in the blockchain and crypto where the agency was most active.
“The IMF is devoting a lot of attention to fintech and in particular to blockchain. But we think that it’s difficult to talk about blockchain without considering it in light of the other new technologies that are forming part of the fintech debate,” said Lekkov. This category includes artificial intelligence (AI), distributed ledger technology, cryptocurrency assets.
He also stressed that banks and countries collaborating with the IMF have shown considerable interest in regulating the developing sector. Lecco said that the organization is ready to provide recommendations in the field of new technologies. To this end, together with the World Bank the IMF launched the ‘Bali Fintech Agenda’ initiative, which will form and study a list of main problems that stand in the way of implementing fintech solutions.
A panel discussion with Ripple’s CEO Brad Garlinghouse also provoked rumors about a possible blockchain startup collaboration with the IMF. Amid the discussions, XRP quotes began to grow again. According to social media reports, Garlinghouse tried to convince the IMF representative that Ripple has great potential. Against the background of news about the conference and the participation of Ripple in it, the cost of the XRP has risen to $0.52.
Earlier the IMF released a World Economic Outlook report in which it stated that cryptocurrency could create new vulnerabilities in the global financial system. The document noted that cyber attacks on critical points of the financial infrastructure represent an additional source of risk, because they can disrupt the functioning of the cross-border payment system.
The head of the IMF, Christine Lagarde, also believes that the rapid evolution of the financial system requires greater vigilance on the part of regulators. “Increased cybersecurity risks pose challenges for financial institutions, financial infrastructure, and supervisors. These developments should act as a reminder that the financial system is permanently evolving, and regulators and supervisors must remain vigilant to this evolution and ready to act if needed,” she said.
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