IMF held today its first high-level advisory meeting on Fintech with most of the focus being on blockchain technology.
According to IMF’s website, the focus was on discussing:
How new technologies can disrupt the nature and provision of financial services and the implications that these changes may have for financial stability and regulation.
A number of senior-level executives, including Jeremy Allaire of Circle, Carolyn Wilkins, Deputy Governor of the Bank of Canada, Tao Zhang, former Deputy Governor of the People’s Bank of China (PBOC), Jill Carlson from Chain, and others, attended.
It’s not very clear what was said behind closed doors, but a livestreamed panel took place where the general theme of balance between innovation and risks, transparency and regulations, was expressed according to reports.
In particular, the panel appears to be of the view that innovation needs to be given room to grow, but at the same time risk needs to be managed. Moreover, while blockchain based innovation may increase risk, it also increases transparency.
According to reports, a panelist noted that FinTech will increase inclusion and therefore improve financial stability, but at the same time add new challenges as money can flow freely across the globe.
Interestingly, ICOs were brought up, with one panelist stating that it is a trend which will impact the financial industry significantly. It’s the first sign this fairly new development has attracted such high level attention, but hundreds of millions have been raised through ICOs in the past year.
The ICO space is currently a bit of a wild west and in a state of flux as well as confusion. On the wild west aspect, there are hardly any quality checks, verifiably independent audits, etc. There are so many of them that few receive even a prima facie look by journalists. Sometimes, even when they do get their attention, the project developers might fail to respond to any probing questions.
The obvious solution here, at this very early stage, is a non-governing body, perhaps supervised by a regulatory authority such as Britain’s FCA. Since ICOs are by their nature international, such non-governing body recognized worldwide would also probably be better than balkanized global regulations which may be contradictory.
Featured image from Shutterstock.
Bitcoin briefly plunges below $2,100 as upward momentum fades
Bitcoin briefly dropped more than $700 from a record high in less than two days, after a week of intense speculation by traders and investors. The digital currency plunged nearly 12 percent
ET Deals Memorial Day Roundup: Save on Dell Core i7 Laptops, 1080p Foscam Wireless Cameras, and More
Just in time for Memorial Day weekend, we’ve gathered up some of the very best discounts online. Whether you’re looking for a new PC, a 4K television, or even a wireless camera, there’s somethin
Is the Crypto Asset Class Finally Coming Into its Own?
It's no secret that bitcoin, ether and other cryptocurrencies have been on a tear.
But, is this sharp uptick in value a sign that these innovative technologies are building greater legitimacy, or i
Three reasons why this bitcoin surge is not the same
Bitcoin's exponential surge is different this time around, most digital currency investors and software developers say. To many, the enthusiasm resembles the rush into technology stocks before
How to Pull Bitcoin out of Darknet Stigma: Blockchain Startup Expertise
With most new technologies, it's rare that mainstream investors dive in and take risks with the unfamiliar and untested. Organized crime, on the other hand, will invest in cutting-edge technologies
Coinbase CEO: Digital Currencies Like Bitcoin Will Become Reserve Currencies
At the Token Summit held on May 25, 2017, at the NYU Stern School of Business in New York City, Coinbase CEO Brian Armstrong noted the possibility of digital currencies and cryptocurrencies such as
Bitcoin Price Officially Doubles That of Gold, Experiences Minor Correction
Until May 26, Bitcoin price remained at around $2,550, demonstrating a value that is double that of gold. Gold is being traded at $1,267 in most major markets. For two straight days, from May 24
Ethereum Classic Becomes Fifth Largest Cryptocurrency, Briefly Beats NEM, Litecoin
Ethereum Classic has become the fifth largest cryptocurrency in the world after surpassing the market cap of Litecoin. Briefly, Ethereum Classic also overtook NEM, the fourth largest cryptocurrency