International Monetary Fund to look into cryptocurrency-related issues to understand its risks and benefits

On 25 January, the IMF chief Christine Lagarde said that the multilateral financial institution is looking into issues relating to cryptocurrencies to understand potential risks and benefits, even as the US made it clear it will not allow any illicit trade through this route.

Speaking here at a session on remaking of global finance at the World Economic Forum (WEF), US Treasury Secretary Steven Mnuchin said, “We will make sure cryptocurrencies are not used for illicit activities.”

Asked whether IMF would heed the G20s call to look into cryptocurrencies, as suggested by French President Emmanuel Macron here, Lagarde said in the same session that the body is accountable to 189 countries and not just 20 though it works closely with the G20 nations.

“We have already started analysing the issues concerning cryptocurrencies including risks and potential benefits,” she said.

Lagarde further said that any dark trade that involves money laundering or anonymity is unacceptable.

She, however, added that she is hopeful of something good coming out of the entire exercise as innovative technologies always help if implemented and used properly and positively.

“Innovations are certainly going to help a lot on inclusion as we have seen world over,” she said.