At the Singapore Fintech Festival, Ripple CEO Brad Garlinghouse and Deputy General Counsel of the International Monetary Fund (IMF), Ross Lekkow discussed the prospects of fintech and blockchain. Like a true politician, Ross Lekkow said a lot during the half-hour conversation, but nothing concrete that would clarify the IMF’s position.
According to Lekkow, the IMF pays great attention to crypto technologies. Blockchain undoubtedly has its promise and potential, but its integration must be discussed in the context of other technology trends such as cloud computing, digital assets, APIs and others. IMF member countries want to know how to harness the benefits of cryptocurrencies while setting rules to minimize the risks of their anonymity and uncontrolled use.
Last year, the IMF created an advisory group of industry leaders from the public and private sectors. Conducting its own research and studying the experience of other countries, the IMF is still studying, observing and waiting.
Without coming to any clear conclusions, Lekkow noted that clarity of regulation has a huge ability to manage digital assets and the blockchain. In his opinion, only a clear regulatory environment makes it easier to apply innovative technologies to solve real business problems.
However, when the regulatory framework for the crypto industry around the world is discussed, the conversation is about very different needs of countries, and it is not surprising that different countries take different approaches to regulation.
The IMF takes a balanced view on this issue. Each country must decide for itself which type of regulatory framework is best.
Undoubtedly, blockchain can have a long-term impact on the global financial sector and society as a whole and solve problems at the macro level. However, the conservative IMF has not yet come to a clear conclusion regarding the introduction of cryptocurrencies and has taken a wait-and-see approach.
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