IMF’s Christine Lagarde Urges Bitcoin Regulation
Regulation of Bitcoin and other cryptocurrencies must be considered now, Germany’s Bundesbank vice president Claudia Buch told Reuters Sunday, though she does not believe they pose a threat to financial stability.
Ms. Buch said that speculation on volatile virtual coins and tokens does not pose a systemic threat because it is not financed through credit, but she said that regulators should look at introducing rules to protect consumers, given that speculation could prove costly for investors.
“The role of crypto tokens like Bitcoin in money laundering and criminal activity must also be closely examined,” she said.
“I do not see a threat for financial stability at the moment as the speculations are generally not financed with loans and the relevant markets are rather small.”
Currently, Bitcoin is trading at: 8,189.9951,+438.94, or +5.66% as of 4:23a GMT, the market is open
The issue of how to regulate cryptocurrencies is likely to be high on the agenda at a 19-20 March meeting of G-20 finance leaders in Argentina.
International Monetary Fund (IMF) Managing Director Christine Lagarde is urging governments and central banks to develop regulations for such crypto assets to prevent them from becoming a new vehicle for money laundering and terrorist financing.
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