Bitcoin at the IMF spring summit: it was always going to be

the Bitcoin and the international monetary elite: At the Meeting of the International monetary Fund experts discussed the future of the (digital) money. To do this, Christine Lagarde, Jeremy Allaire (Circle) met, Benoît Cœuré, Patrick Njoroge and Sarah Youngwood, JPMorgan. Especially the latter is a frightening demonstrated level of ignorance.

By Phillip Horch
11. April 2019BTC$5.043,00 -3.57%part Facebook Twitter LinkedIn xing mail

At the spring meeting of the International monetary Fund (IMF), the focus was on the future of money. The word Bitcoin and crypto currencies fell, although this was less surprising. What struck me, however, much more: The testimonies of Sarah young wood of JP Morgan Chase. However, after the row.

The auspices of the discussion took Christine Lagarde. The managing Director of the IMF took first, Jeremy Allaire of Circle (a Stable-Coin project), to the visor. On the question of why people trust in DLT, Bitcoin, Blockchain and co. should have said this:

It is not so much about trust Circle, but rather the Internet. [...] What's really important here is that we can access all the information within seconds. There is no Central entity that controls, what is the content of setting or re-takes. We appreciate all of the freedom value, to connect in this open, global System. [...] I think, just in terms of money, we have to do it with a very similar Situation. [...] I also believe that it is currently difficult to understand a world in which they control their own Assets, rather than relying on Intermediaries such as, for example, a Bank leave.

as soon As a world have been established, the CEO of Circle, further, there is no going back. Here, he draws the comparison to the Internet – this trust, ultimately, a lot of people. From everyday life it is impossible to imagine today:

No government controls the Internet, no company controls it. These are distributed networks, [...] an infrastructure that we all trust. And also the future is also the future of digital money.

Ultimately, it is in the case of crypto-currencies to create a world that corresponds to the Internet. A public domain so it was accessible to all. Bitcoin, crypto-number systems and an increase in the centralization of the monetary system come from, so Alllaires forecast in the next 12-24 months.

"trust is extremely important for us,"

Then Lagarde is speaking to Sarah Youngwood, JPMorgan, a representative of the Bank group that struck in the Bitcoin Ecosystem last through your current Stable-Coin project. Trust, young wood, is extremely important for an Institution such as JPMorgan:

trust is extremely important to us. Globally, financial institutions are the ones which will be most familiar. More than governments, more than NGOs [with a view to Allaire] and six times more than Tech companies in the United States. This is because we invest very much in this trust, and the Cyber-security of the data. We believe that the biggest risks are [...]. Everything we do in the interest of the fact that you can have confidence in the System.

If you ignored this statement, the current political and economic processes in the world, and where the young wood has your information, they open, however. Nevertheless, the trust that is required always in the Interaction of people and technology.

Bitcoin regulation will affect the entire globe.

Benoît Cœuré of the European Central Bank is, however, mainly emerging regulatory issues in the future. This, the French economist, concerning the last end of the whole world:

We are accustomed to make regulation in our backyard, in a very convenient manner. We need to leave this comfort zone and with other regulators to speak to a functioning System. This is a challenge. Probably the data is the most important issue for the next 5-10 years question.

"In Crypto we trust"

Jeremy Allaire, by contrast, decentralized trust, such as Bitcoin on the way, as an important engine for the regulatory future. The Circle CEO:

We have in the world of crypto is the Motto currencies: In Crypto we trust. [...] Cryptographic proofs are a dramatically better way for society to organize important information. Rather than to [...] to leave people or korrumpierbare Intermediaries. [...] In a word: We believe in mathematics. This is ultimately what it's all about.

Ultimately, you've seen what can happen when you put this trust in the hands of others. Whether in the technological Social Media, or even in the banking sector: The centralization of data, and the rule in a System is always error-prone. In the Bitcoin Ecosystem it is ultimately, however, much more than just money:

crypto and Blockchain is not just about digital payments. It is a fundamentally new infrastructure, important information is kept. [...] It is a transformation of the way a civil society works.

to shoot More in Bitcoin than in any other Form of payments

On the technological Gretchen question of trust the way Sarah young wood white, in turn, skillfully into the Offside. Bitcoin (it is, as some readers will know, for the past ten years), have caused more fraud than other payment types. So the statement of the young wood:

There was more fraud in Cyber, uh, in Bitcoins, than any other Form of payments exists. I mean: There is cash and there are Bitcoins in terms of fraud.

"of fraud, there will always be"

Benoît Cœuré, however, know that you have to proceed here in a somewhat more differentiated:

here it is necessary To distinguish between fraud and systemic instability. Fraud is always fraud, it will always be. [...] This has not much to do with technology. It can be through technology, but fraud is always there. What is new: The fragility that can arise when decentralization comes into play, if they are not properly managed. So I'll say nothing against decentralization in General, but we must manage so that it does not bring any instability.

The anti -quality of the money system, be it so, ultimately, we need to secure it together. The Lagarde confirmed, ultimately, in a final Interview with the News-the platform CNBC. Crypto-currencies such as Bitcoin and the disruption potential of the Distributed Ledger technology, Lagarde will have to keep ultimately in the eye:

Everything that has to do with the DLT; whether they call it now, digital currencies, crypto-currencies or Assets– we no longer talk only of Bitcoin changed the geeschäft model of commercial banks. But we need to do two things thoughts: trust and the stability of the system. And we at the IMF are mainly interested in stability. We do not want Innovation, the System shakes so much that it loses its stability.

let the games begin.

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