The International Monetary Fund (IMF) warned that with global banks’ recent adjustments to Bitcoin and blockchain, the “rapid growth†of Bitcoin and cryptocurrency assets may create “new vulnerabilities†in the international financial system. Sex".
Bitcoin and cryptocurrencies, including Ripple Lab's XRP tokens, Ethereum, Litecoin, EOS and Stellar, are being tested by the traditional financial system to evaluate how to use them as investment tools and funds faster and cheaper Integrate the methods of cross-border movement.
In the past 12 months, people are very excited about how Bitcoin and cryptocurrency technologies are based on blockchain-based distributed ledgers, which have driven the prices of many major cryptocurrencies to their highest point. Last year, the price of Bitcoin soared from less than $1,000 in early 2017 to nearly $20,000 in December last year.
The price of Bitcoin subsequently fell sharply, and the current transaction price is about $6,500, and it has dragged down many of the largest cryptocurrencies-many of which have fallen by 80% from their peak.
According to the latest World Economic Outlook Report released by the IMF today, “Network security breaches and cyberattacks on important financial infrastructure are another source of risk because they may disrupt cross-border payment systems and disrupt the flow of goods and services. The continued rapid growth of encrypted assets may bring new vulnerabilities to the international financial system."
Financial regulators all over the world are striving to control Bitcoin and the blockchain phenomenon, with mixed successes and failures.
Last month, the British government referred to the cryptocurrency world as the "barbaric west" and recommended that oversight of emerging industries be transferred to its main financial services industry, the Financial Services Authority.
In February of this year, Christine Lagarde, President of the International Monetary Fund (IMF), stated that the international community’s regulatory actions on cryptocurrencies are “inevitable†and that the IMF’s concerns about cryptocurrencies are largely due to Because of its potential use in illegal financial activities.
The latest report of the International Monetary Fund (IMF) in October also warned: “The indiscriminate rollback of post-crisis regulatory reform and supervision at the domestic and international levels may encourage excessive risk-taking behavior and lead to financial fragility. Further increase."
Some banks are considering implementing Ripple Labs’ new xRapid service, which uses digital XRP tokens to process cross-border transfers, with the purpose of acting as a bridge between different currencies around the world, enabling payment providers and banks to process cross-border transactions faster . Earlier this year, Brad Garlinghouse, CEO of Ripple Lab, boasted that by the end of 2019, "dozens" of banks will use xRapid.
Elsewhere, many large investment banks, including New York banking giant Goldman Sachs, are experimenting with the use of bitcoin products to allow customers to participate in the cryptocurrency market without having to compete with those that are usually clumsy and relatively different. Regulated Bitcoin and cryptocurrency exchanges deal.
At the same time, a report released by cybersecurity company McAfee last month found that cybercriminals are stepping up efforts to target devices that use cryptocurrency malware. ChrisTIaan Beek, chief scientist and senior chief engineer of McAfee Advanced Threat Research, said that in the past few years, Internet routers and other devices have become possible targets for so-called secret attacks.
According to McAfee data, approximately $1.5 billion worth of cryptocurrency has been stolen in the past two years.
This is not the first time the IMF has warned against the risks of Bitcoin and cryptocurrencies. The Stability Report issued by the International Monetary Fund (IMF) last week stated:
Despite the potential benefits, our understanding of the potential risks and their possible outcomes is still evolving. The increase in cyber security risks poses challenges to financial institutions, financial infrastructure and regulatory agencies. These developments should remind people that the financial system is undergoing permanent changes, and regulators and supervisors must remain vigilant against such changes and be ready to take action when necessary.
The IMF also stated in its October World Economic Outlook report that as the United States and China intensify the current tariff war, the global economy is expected to grow by 3.7% this year and next year, which is 0.2 percentage points lower than the April forecast.
IMF chief economist Maurice Obstfeld said in a prepared speech that, given that the risk of "further interruption in trade policy" has become more prominent, the previous forecast now looks "too optimistic."
The IMF also lowered its forecast for global trade volume. It is expected that the total flow of goods and services will increase by 4.2% this year and 4% next year-0.6 and 0.5 percentage points lower than previous estimates, respectively.
The IMF stated in the report that the reduction is obvious in several countries: Argentina, Brazil, Mexico, Iran and Turkey-many of which have already experienced the test of cryptocurrency.
In the context of interest rate hikes in the United States, emerging economies as a whole have experienced larger capital outflows. Investors usually use Bitcoin and cryptocurrencies to circumvent capital controls.
Countries such as Argentina and Turkey have always been one of the countries with the most serious problems. Due to the economic management problems of their governments, their currencies against the US dollar have fallen to record lows.
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