Crypto does not pose a threat to global Finance –IMF Report

The International Monetary Fund (IMF) has released a report which outlines its beliefs that cryptocurrencies and its burgeoning market do not seem to pose a threat to the global financial system (just yet) due to the lack of international consensus on regulatory frameworks for cryptocurrencies at large.

With the part of the April release of the IMF’s Global Financial Stability Report “A Bumpy Road Ahead” highlighting a detailed outlook to cryptocurrencies, the organization had, as part of its comment, noted that “international agreements on crypto regulations” should be pursued. The report had emphasized that “…should their use become more widespread without appropriate safeguards,” they could pose that threat.

“It is impossible to know the extent to which crypto assets may transform the financial infrastructure and whether most new crypto assets are likely to disappear as in past episodes of technological innovation (as many tech companies did during the boom of the late 1990s, for example). Before they can transform financial activity in a meaningful and lasting manner, crypto assets will first need to earn the confidence and support of consumers and financial authorities.”

An excerpt from the report reads. Also, the organization had stated that until there is a general agreement amongst global regulatory bodies about whether these digital assets should be considered a security or a currency, these assets would not gain that confidence. This, thereof, implies that as far as the global markets are concerned, the lack of government involvement in shaping the crypto sphere makes it a lesser threat.

Now, while the current economic situations remain favorable to the global financial stability, the short-term risks are not entirely eliminated and have notably increased in the last few months which had raised the volatility of the world’s stock market. As a result, it appears that global policy makers and regulatory bodies are taking advantage of the somewhat favorable current state to curtail the short-term risks by imposing regulatory frameworks and other policies to strengthen their financial systems.

Now, though till date, very little done has been by global governments in reshaping crypto spaces and adopting cryptocurrencies especially with many of them expressing their distrusts towards this system, the status quo could change at any moment especially with more countries moving to adopt Blockchain technology. Especially with the IMF’s take on cryptocurrencies which subsequently mirrors FSB’s Mark Carney’s letter to the G20 leaders and Malta’s move, it appears that the tides might be turning to favor cryptocurrencies and especially stabilize the market. This even makes it more remarkably favorable to online crypto gamers at large with online gaming platforms to be a better hunting ground for more cryptocurrencies.

Also, taking into account Europe’s iGaming center Malta’s recent pioneering regulatory move towards cryptocurrency gambling and Blockchain technology, it appears the world’s equilibrium might tilt towards cryptocurrencies in the long run.

Given the world’s uptake on the adoption of Blockchain technology, it has been noted that a relatively impressive number of blockchain-based online gaming platforms are being integrated for more transparent dealings with the online gaming platform, Belotto, being one of the top players. Especially with Belotto built to promote crypto gaming while leaning on the transparency blockchain promises, online crypto gaming appears to be relatively safer.
It has been noted that Belotto inculcates Ethereum’s smart contracts for its ticket sales and jackpots as well as Bitcoin blockchain hashes for maintaining transparency, trust and security within the house and the winners in general.

So, while decentralization and lack of regulations appear to be the main threat to crypto critics, this online gaming platform has been known to overturn these common “issues” to promote transparency and generate more trust in cryptocurrencies and the underlying technology.

It also might be important to know that the platform integrated escrow into its system such that mismanagement of funds is curtailed on the platform and the transfers are made in due time. As such, all needed for a complete transaction remains a wallet.

With this report appearing to have created the proverbial “ray of sunshine” in the midst of the dark and gloomy clouds of regulations against cryptocurrencies, it is hoped that the adoption of a legal framework for crypto assets as suggested by the organization would help restrain critics against them.