IMF calls for global regulation of virtual currencies

The International Monetary Fund (IMF) is advocating more coordination between countriesn as far as the regulation of virtual currencies is concerned. According to Gerry Rice, spokesman for the IMF, it would help if different supervisors worked together more and there was more talk about this new phenomenon at the international level.

One of the main advantages of virtual currencies such as Bitcoin, Ethereum and Ripple is that they can be traded directly between users, without the intervention of banks, regulators and governments. This not only gives a sense of privacy, but also unlimited freedom. Virtual currencies cannot be intercepted by customs, are not affected by capital restrictions and, even in the extreme case of a bank holiday, can be traded worldwide 24 hours a day.

IMF calls for more international coordination

It is therefore not surprising that governments and central banks are currently struggling with virtual currencies. In some countries, trading is banned, while policymakers in others are considering taxing the virtual currencies. The lack of an unambiguous position makes it difficult for governments to regulate virtual currencies. The IMF wants to change that, because the increased popularity of virtual currencies also comes with certain risks.

"Virtual currencies have the potential to offer advantages as an efficient means of payment, but the dangers go beyond potential losses for individual investors. The cryptocurrencies can pose significant risks as a tool for money laundering, terrorist financing, tax evasion and fraud."

Last September, IMF chief Christine LaGarde said that the increasing popularity of virtual currencies could be a challenge for central banks.

"Not so long ago, some experts thought that computers would never be widely accepted and that tablets would only be used as expensive coffee boards, so I don't think it's wise to ignore virtual currencies."

France and Germany also want to Make appointments to regulate the trading of virtual currencies. They will present their proposal to other countries at the next G20 summit in March.

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IMF calls for global coordination of virtual currencies