[2018-10-09] IMF suggest crypto could create new vulnerabilities in finance

[bbc.reporter]

Yes, agreed. Some regulations might be needed but how will they supervise the cryptospace and enforce those regulations? We hold our private keys. How can they stop anyone from making global transactions?

Also, who should the government regulate? The processors of the transactions also known as the miners? Good luck hehehe.



The IMF published a new World Economic Outlook report today. In a report from Forbes, the IMF states that:

Cybersecurity breaches and cyber attacks on critical financial infrastructure represent an additional source of risk because they could undermine cross-border payment systems and disrupt the flow of goods and services. Continued rapid growth of crypto assets could create new vulnerabilities in the international financial system.

This isn’t the first time that the IMF has spoken about the crypto market. In February, Christine Lagarde, the chief of the IMF, stated that it was only a matter of time before cryptocurrencies fell under government regulation. At the time, she said:

It’s clearly a domain where we need international regulation and proper supervision. There is probably quite a bit of dark activity [in cryptocurrencies].

Read in full https://www.livebitcoinnews.com/imf-report-suggests-crypto-could-create-new-vulnerabilities-to-finance-market/

[cr1776]

...
Cybersecurity breaches and cyber attacks on critical financial infrastructure represent an additional source of risk because they could undermine cross-border payment systems and disrupt the flow of goods and services. Continued rapid growth of crypto assets could create new vulnerabilities in the international financial system.
...

It is more likely that crypto assets will expose pre-existing vulnerabilities vs create vulnerabilities.  They won't like that either of course. 

And "some" regulation leads to excessive regulation quite quickly once the power-hungry SOBs start.

[cryptofonia]

IMF started being really afraid of cryptocurrencies https://cryptofonia.pro/news/imf-started-being-really-afraid-of-cryptocurrencies/

[DooMAD]

We're fixing more vulnerabilities in finance than we create, which is something the IMF will never understand because they're too busy creating more vulnerabilities in finance than they fix.   

The IMF seriously need to spend the rest of their collective lives trying to comprehend where they went so dismally wrong.  Get your own house in order before you start saying ours is going to cause problems.

[bbc.reporter]

...
Cybersecurity breaches and cyber attacks on critical financial infrastructure represent an additional source of risk because they could undermine cross-border payment systems and disrupt the flow of goods and services. Continued rapid growth of crypto assets could create new vulnerabilities in the international financial system.
...

It is more likely that crypto assets will expose pre-existing vulnerabilities vs create vulnerabilities.  They won't like that either of course. 

And "some" regulation leads to excessive regulation quite quickly once the power-hungry SOBs start.

Agreed, but it does not automatically imply that one system is better than the other. The cryptospace does and will also have more vulnerabilities that are unique within its own system. But does more regulation help reduce those vulnerabilites? It might, but how do you enforce regulations on a system of users that have 100% control over their private keys?

[audaciousbeing]

Regulations does not mean that there would be absolute control but a simple oversight is what will boost the confidence of people in the market as a whole.

The use of the word "dark" makes me giggle because anything you cannot see is surely dark to you. Just like the way they have criminalise the dark web forgetting that even the NSA and other government's security database across the world not accessible to the public falls under the dark web. The fear is the control in which is gradually slipping away from the hands of those in places of power and when this happens, they lose powers in every sectors they have interest in and they is sliding gradually to an end.

[Slow death]

who should the government regulate?

I agree with the regulations, in my view the regulations can be very beneficial, governments can regulate ICOs and exchange and governments should promote a good environment between exchange and banks to ensure that people can buy cryptos using their debit and credit cards. only if we have regulations can we have a greater adoption

this article talks very little about bitcoin, but talks a lot about blockchain, who looks at the title and the content of the article is shocked, because the title of the article is scary, but the content of the article does not even talk so much about bitcoin

[bbc.reporter]

@audaciousbeing. They have to be scared. The cryptospace is taking away their authority and monopoly in the money printing business hehehe.

It is already an inevitability before a good percentage of the global populace become cryptocoin users. But I reckon not many people believe it will occur.

[veleten]

@audaciousbeing. They have to be scared. The cryptospace is taking away their authority and monopoly in the money printing business hehehe.

It is already an inevitability before a good percentage of the global populace become cryptocoin users. But I reckon not many people believe it will occur.

while there are more and more people aware of crypto and some actively using it
they are not ready to discard the "it is worth as much as I can sell it for fiat"  mentality
once you can walk into any shop and buy with coins or sell your car or a house for bitcoins things will change
they are in control at the moment,the banksters, it is easy to just cut the convert to money chain or declare crypta illegal in some cases
but their monopoly will come to an end sooner rather than later

[pixie85]

The vulnerabilities already exist. Cryptocurrencies by acting as a wake up call for the masses only make these vulnerabilities more visible.
At least now if shit hits the fan people will have an alternative currency to escape to. IMF is only watching from their own perspective instead of worrying about the people who enable them and allow the banks to prosper.