## An Even-handed Approach to Crypto-Assets _IMF Blog, April 16, 2018_ ## Source details **Canonical URL:** [An Even-handed Approach to Crypto-Assets](https://www.imf.org/en/blogs/articles/2018/04/16/an-even-handed-approach-to-crypto-assets) ## Other formats - [Markdown version](/en/blogs/articles/2018/04/16/an-even-handed-approach-to-crypto-assets/index.md) - [Structured JSON version](/en/blogs/articles/2018/04/16/an-even-handed-approach-to-crypto-assets/index.json) - [Bundle manifest](/en/blogs/articles/2018/04/16/an-even-handed-approach-to-crypto-assets/bundle-manifest.json) ## Bibliographic details - Authors: Christine Lagarde - Published: April 16, 2018 --- ### Overview and context - Author: Christine Lagarde - Date: April 16, 2018 - Key framing: Neither “crypto-condemnation” nor “crypto-euphoria”; call for an even-handed regulatory framework that minimizes risks while allowing innovation. ### Current landscape and risks - There are more than 1,600 crypto-assets in circulation. - Crypto-assets exhibit "dizzying gyrations" and invite historical comparisons (tulip mania, dot-com bubble), implying many will not survive creative destruction. - Potential dark-side risks previously noted include money laundering and the financing of terrorism. - Preliminary IMF assessment: given their still-small footprint and limited links to the rest of the financial system, crypto-assets do not pose an immediate danger. - Risk channels and concerns: - Potential to magnify risks of highly leveraged trading. - Possibility of increased transmission of economic shocks if crypto-assets become more integrated into mainstream financial products. - Challenges to banks’ and other financial institutions’ business models if there is a large-scale shift away from government-issued currencies toward crypto-assets. - Regulators may find it harder to ensure stability in a more diffuse and decentralized financial system. - Central banks could face more difficulty acting as lender of last resort in a crisis. ### Potential benefits and promising applications - Fast, inexpensive financial transactions; some services already enable overseas transfers in a matter of hours rather than days. - If privately issued crypto-assets remain risky and unstable, there may be demand for central banks to provide digital forms of money (noted as an idea explored in the Global Financial Stability Report). - Distributed ledger technology (DLT) could: - Help financial markets function more efficiently. - Enable self-executing and self-enforcing “smart contracts” that could eliminate the need for some intermediaries (example: Australian Securities Exchange plans to use DLT to manage clearing and settlement of equity transactions). - Provide secure storage of important records (example: healthcare companies studying DLT to maintain confidential medical data while providing access to insurers and authorized users). - In developing economies, help secure property rights, increase market confidence, and promote investment (example: Bitland in Ghana uses a DLT-based platform to securely record land sales). ### Outlook for financial architecture - Fintech revolution will not eliminate the need for trusted intermediaries (brokers, bankers). - Decentralized applications spurred by crypto-assets may: - Lead to diversification of the financial landscape. - Produce a better balance between centralized and decentralized service providers. - Create a financial ecosystem that is more efficient and potentially more robust in resisting threats. ### Policy guidance and recommendations - Adopt an even-handed regulatory agenda that: - Protects against risks without discouraging innovation. - Distinguishes between real threats and needless fears through clear-eyed assessment. - Key actions for authorities and the IMF: - Reach a consensus within the global regulatory community on the role crypto-assets should play; international cooperation is essential because crypto-assets know no boundaries. - IMF role: offer advice and serve as a forum for discussion and collaboration (IMF membership: 189 countries). - Keep abreast of rapid developments in markets and technologies. - Act quickly to close knowledge gaps that inhibit effective monitoring of crypto-assets. - Conduct systemic risk assessment and timely policy responses. - Implement measures to protect consumers, investors, and market integrity. ### Conclusion - A judicious, evidence-based approach can harness the gains of crypto-assets while avoiding pitfalls; authorities should be vigilant but open-minded to allow the creative process to bear fruit. *Source: IMF blog post "An Even-handed Approach to Crypto-Assets" by Christine Lagarde, April 16, 2018.* --- ## Content in this bundle - **全面看待加密资产； IMF博客； 2018年4月16日** - [全面看待加密资产； IMF博客； 2018年4月16日 (Markdown version)](/external/chinese/np/blog/2018/041618c.pdf.md){rel="alternate" type="text/markdown"} - [全面看待加密资产； IMF博客； 2018年4月16日 (PDF)](/external/chinese/np/blog/2018/041618c.pdf){rel="external" type="application/pdf"} - **仮想資産のための公正なアプローチ クリスティーヌ・ラガルド IMF ブログ　2018年4月16日掲載** - [仮想資産のための公正なアプローチ クリスティーヌ・ラガルド IMF ブログ　2018年4月16日掲載 (Markdown version)](/external/japanese/np/blog/2018/041618j.pdf.md){rel="alternate" type="text/markdown"} - [仮想資産のための公正なアプローチ クリスティーヌ・ラガルド IMF ブログ　2018年4月16日掲載 (PDF)](/external/japanese/np/blog/2018/041618j.pdf){rel="external" type="application/pdf"} - **Uma abordagem imparcial para os criptoativos; Christine Lagarde; 16 de abril de 2018** - [Uma abordagem imparcial para os criptoativos; Christine Lagarde; 16 de abril de 2018 (Markdown version)](/external/lang/portuguese/np/blog/2018/041618p.pdf.md){rel="alternate" type="text/markdown"} - [Uma abordagem imparcial para os criptoativos; Christine Lagarde; 16 de abril de 2018 (PDF)](/external/lang/portuguese/np/blog/2018/041618p.pdf){rel="external" type="application/pdf"} - **Непредвзятый подход к криптоактивам; Кристин Лагард; Блог МВФ; 16 апреля 2018 года** - [Непредвзятый подход к криптоактивам; Кристин Лагард; Блог МВФ; 16 апреля 2018 года (Markdown version)](/external/russian/np/blog/2018/041618r.pdf.md){rel="alternate" type="text/markdown"} - [Непредвзятый подход к криптоактивам; Кристин Лагард; Блог МВФ; 16 апреля 2018 года (PDF)](/external/russian/np/blog/2018/041618r.pdf){rel="external" type="application/pdf"} --- ## References - [عربي](http://www.imf.org/ar/News/Articles/2018/04/16/blog-an-even-handed-approach-to-crypto-assets) - [https://www.imf.org/wp-content/uploads/2018/04/BLOG-1024x600-MD-Crytpo-revised-healthcare-bsiphotos-newscom-110032.jpg](https://www.imf.org/wp-content/uploads/2018/04/BLOG-1024x600-MD-Crytpo-revised-healthcare-bsiphotos-newscom-110032.jpg) - [my blog last month,](https://blogs.imf.org/2018/03/13/addressing-the-dark-side-of-the-crypto-world/) - [speech](http://www.imf.org/en/news/articles/2017/09/28/sp092917-central-banking-and-fintech-a-brave-new-world) - [Global Financial Stability Report](http://www.imf.org/en/Publications/GFSR/Issues/2018/04/02/Global-Financial-Stability-Report-April-2018) - [Bitland](http://www.imf.org/en/news/articles/2017/12/15/sp121517-the-foundations-of-technological-transformation-in-africa) _Source: https://www.imf.org/en/blogs/articles/2018/04/16/an-even-handed-approach-to-crypto-assets_