Christine Lagarde, President of the European Central Bank (ECB) and ex managing director of International Monetary Fund (IMF), has called for global action to restrict lawbreakers from attempting to carry out money laundering via Bitcoin.
Lagarde, in an interview with Reuters, stamps the numero uno crypto currency a “highly speculative asset” that has paved way for illegal activities several years back.
“It is a speculative asset, by any account. If you look at the most recent developments upward, and now the most recent downward trend. For those who had assumed that it might turn into a currency, terribly sorry, but this is an asset and it’s a highly speculative asset, which has conducted some funny business and some interesting and totally reprehensible money laundering activity.
There has to be regulations and this has to be applied and agreed upon. This is a matter that has to be agreed upon at a global level. If there is an escape, that escape will be used. If anything it shows that global cooperation and multi-lateral action is absolutely needed, whether it is initiated by the G7, or the G20.”
A research report published last year by BAE (British Defense and Aerospace) Systems, as per the request of SWIFT (Society for Worldwide Financial Telecommunication) argued that miscreants will be lured towards cryptocurrencies that favor anonymity and total privacy.
Nevertheless, till date, cash is the first preference of money launderers, instead of Bitcoin and other cryptocurrencies.
“Identified cases of laundering through cryptocurrencies remain relatively small compared to the volumes of cash laundered through traditional methods.”
In the final leg of last year, Lagarde spoke about stablecoins, which are usually begged to conventional assets. While acknowledging their ability to pave way for innovation, she called for a detailed study to guarantee that they do not pose a risk to the monetary sovereignty of the EU.