Lagarde warned that failing to crackdown on bitcoin would result in criminals seeking to use cryptocurrency for nefarious purposes.
Authorities have frequently warned about the potential for criminals to use cryptocurrency, but we also know that criminals have been using the US dollar (and other means) to fund their crimes for decades. And at this point in time, the US dollar is still regarded as the most misused currency. Even reputable banks, such as HSBC, have been found guilty of laundering money for criminals. Yet the banks and the US dollar didn't become branded as only tools for criminals to use.
Lagarde and others have been rather aggressive in trying to portray cryptocurrency as just "currency for criminals." Trying to fuel the notion that one should be suspicious when they come across someone using or talking about bitcoin and other cryptocurrencies.
“We can harness the potential of crypto-assets while ensuring that they never become a haven for illegal activity or a source of financial vulnerability.”
“It would not be wise to dismiss crypto-assets; we must welcome their potential but also recognize their risks,”
Lagarde also warned that it was imperative for countries to work together to try and achieve the goal of cracking down on bitcoin. Cryptocurrencies have no borders she says, and so for this reason she said it will take a global effort to regulate.
Pics:
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wikipedia commons via img.bigpara.com
Sources:
https://www.ft.com/content/4af5c5b8-f473-11e6-8758-6876151821a6
https://www.theguardian.com/technology/2018/mar/13/imf-christine-lagarde-calls-bitcoin-crackdown-cryptocurrencies
http://www.dailymail.co.uk/home/moslive/article-1246519/How-500-euro-financing-global-crime-wave-cocaine-trafficking-black-market-tax-evasion.html
http://www.scmp.com/tech/innovation/article/2126558/criminal-underworld-dropping-bitcoin-other-cryptocurrency
http://www.bbc.com/news/business-43387319
https://cointelegraph.com/news/debunked-bitcoin-facilitates-crime
