International Monetary Fund MD plans to regulate cryptocurrencies


As part of CNN’s coverage of the World Government Summit in Dubai, John Defterios spoke with Christine Lagarde, the Managing Director of the International Monetary Fund.

They discussed the growth of global markets, America’s economic strategy and the rise and risks of cryptocurrency.

On regulating cryptocurrency:

“I believe that it’s inevitable. We have had an entity based regulation over the past ten years, after the financial crisis we clearly have to move into an activity based regulation, forget about the entities, work on the activities themselves and who does what and who is licensed to do what and who is properly regulated and supervised.”

On Bitcoin, the mentality of global markets and starvation for high returns:

“It tells us a bit about the herd mentality, number one. It tells us a lot that people are looking for this high yield products and there is an element of speculation about that and it also tells us there is probably quite a bit of dark activities behind that particular scene and we are actively engaged in our anti-money laundering, in countering the financing of terrorism and that reinforces our determination to work on those, in those two directions.”

On how the IMF’s growth forecasts compare to the those of the United States:

“We are certainly forecasting an increase of growth in the short term, this year, next year there will clearly be an impact on growth, if only because a lot of investment are going to be anticipated because of the full deduction of expenditure and then we will see how it goes. The risk of inflation would be linked to the fact that growth is being pushed, that salaries are higher because the US economy is working well and on many cylinders at the moment.”

On the history of deflation:

“People get used to things so quickly. deflation was the story of the day and there was not much movement. The fact that wages in the US went 0.2% higher then what they were expected, and everyone suddenly woke up and thought oh my goodness there is inflation on sight. Well everybody has been waiting for a little bit of inflation and a way to return to more traditional money policy, gradually, well communicated ahead of time and all the rest of it. So, our recommendation is hopefully that it continues to be that way.”

This information was originally published by CNN Money.

Copyright CNN Money 2018.

Published under permission by CNN and Burson-Marsteller. 

Source: CNN Money 


About Author

Thabo Mphahlele is the BizNis Africa Head of Sales and Marketing. Mphahlele was previously MultiChoice Production Support Analyst responsible for developing and monitoring applications. In addition, Mphahlele develops and automates batch scripts and is responsible for the daily infrastructure maintenance at MultiChoice. As a Production Support Analyst, he is responsible for incident analysis solving , developing and constructing business reports for SQL and Oracle and implement change controls for the business. Additional responsibility includes monitoring system performance via SOA, Kibaba (Elasticsearch), H.P BSM, HP Sitescope. Mphahlele is responsible for creating infrastructure performance reports through HP Ops Analytics, monitoring payments via Splunk and in-house built-in tool and disaster recovery simulation and testing. At Nashua Mobile, he was responsible for application development and enhancing the web sites At South West Gauteng College, he was the IT Technician and Network Administrator. During his tenure at Double Digit Media, he was he focused on application and web site development for new and existing clients Mphahlele contributes as a Content Manager for BizNis Africa.

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