IMF: growth of Bitcoin will have an impact on the financial system

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Large financial institutions in the world had been described that Bitcoin and other digital currencies do not pose a risk to the financial system. The International monetary Fund (IMF) takes in a new report that the rapid growth can affect the international financial system.

The influence of Bitcoin in the General Public often first day of work includes, and with a clear result. Bitcoin and crypto-currencies are not a threat to the current world economy.

The summary of the IMF report “World Economic Outlook: Challenges to steady Growth”, however, comes to a significantly different result. This describes that crypto-currencies an additional source of Risk for the established financial system could (freely translated):

Cyber security breaches and cyber attacks on financial critical infrastructure represent an additional source of Risk, since they could interfere with cross-border payment systems are undermined, and the Goods and services. Continued rapid growth of crypto-Assets that could create new vulnerabilities in the international financial system.

Although the crypto market has fallen since the High in December of last year, since, on average, more than 80%, were achieved great progress in terms of adaptation and Reguliereung.

Great heavyweights of the financial industry such as the New York Stock Exchange, the Bakkt its own stock exchange for crypto-currencies plans, or Goldman Sachs, many companies have the infrastructure to institutional investors entering the market to enable and facilitate.

A variety of companies and individuals to see in digital currencies a viable Alternative to traditional Fiat money, so that hackers have begun to exploit the vulnerabilities of exchanges or Wallets to steal billions. This is one of the problems to be solved with the growth of Bitcoin and co. (freely translated):

Stealing from crypto-currencies is the Stealing of cash similar to, and the exchange is in the long term to hacker attacks targeting. It is equally important to establish systems, Hacking attacks, to pursue, by different methods are built in to prevent hacker attacks.

In South Korea, many exchanges have already begun some time ago by a large insurance provider to the credit of your customers secure in case of an emergency to ensure that crypto-stocks of the user are protected.

In a similar way, the American crypto-exchange, Gemini has embarked on. Yusuf Hussein, head of the risk Department at Gemini, describes (freely translated):

Consumers are looking for the same insured protection you are used to from traditional financial institutions. Through the training of our insurers, we are able to offer our customers not only protection, but also expectations in relation to consumer protection in the crypto industry.

The report of the IMF, describes existing problems to be solved, the adaptation of crypto currencies as an alternative asset class in the long term and to establish. We are excited to see what further developments will there be in this area.

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