Christine Lagarde, the IMF’s managing director, wrote in a Tuesday blog post that she believes regulators can use blockchain or other distributed ledger technologies (DLT) to regulate Bitcoin and other cryptocurrencies and prevent them from being used in connection with money laundering and other financial crimes.
Elsewhere in the post, which bears the ominous title “Addressing the Dark Side of the Crypto World,” Lagarde explained that she believes DLT and other digital technologies can be used by financial regulators across the globe to “communicate seamlessly” and create registries of customer information and digital signatures that would be linked to biometric information.
On Tuesday, Japan became the latest country to announce that it will formally call for G20 members to discuss international cryptocurrency regulations at the group’s upcoming finance summit.
The European Commission has confirmed that it is paying attention to concerns about rising electricity consumption for cryptocurrency mining in the European Union, according to European Commissioner Mariya Gabriel, who oversees digital economy and society.
The Commission, Gabriel noted, is aware of the concerns on growing electricity consumption for cryptocurrencies and blockchain technology in general.
But given that electrical consumption is an economic activity, it is subject to EU rules that apply to energy efficiency, the power sector and greenhouse gas emissions.
It is important to keep in mind that many promising applications of blockchain technology do not have extensive need for processing power, Gabriel’s statement further noted.
In January, International Monetary Fund Managing Director Christine Lagarde told the World Economic Forum that bitcoin mining is too energy intensive.