Christine Lagarde of the IMF has suggested “fighting fire with fire” by regulating Bitcoin with the IMF’s own blockchain technology. I am not sure what they are proposing on a technical level or what this common is really based on, but let’s read between the lines of the intention.
This is very exciting news as it signals the IMF is acknowledging that cryptocurrency and Bitcoin especially are here to stay. They wouldn’t regulate something that they don’t expect to survive.
Now the bad news is that the IMF may have something up their sleeves that slows or impedes Bitcoin and other cryptocurrencies from functioning as they should. After all the IMF has also played roles that many of us do not think is constructive or fair to the countries that have used it. If we apply the same scenario to Bitcoin it is time to get excited and scared at once. It also seems disingenuous to imply cryptocurrency has a darkside while implying fiat doesn’t. I get it and agree, fiat is better controlled so they like it but fiat is still used for crimes all the time. If fiat wasn’t regulated under their control they would probably make similar statements about fiat instead of cryptocurrency.
The real question is what is the real intention? Obviously as they’ve stated it is regulation but will the regulation make it so only the elite can trade Bitcoin or do they simply just want their own cut and control of cryptocurrency? I think if we look at the history of their role and fiat, the truth will lay right in the middle but only as far as what they’ve decided should be the fate and role of fiat. Both can coexist but do they intend for them to coexist or for one to roll over the other?
Either way announcements like this show us that cryptocurrency is certainly here to stay and it has caught the attention of the entire finance world.