A recent report by the International monetary Fund (IMF) said that the continued rapid growth of bitcoin and other cryptocurrencies will seriously affect the functioning of the international financial system and open up new vulnerabilities for hackers.
The report, named “World economic Outlook: challenges for sustainable growth”, States: “violations of cyber security and cyber attacks on financial infrastructure represent an additional risk factor because they can cause damage to the international payment systems and disrupt the flow of goods and work services. The continuing rapid growth of the cryptocurrency assets can create new vulnerabilities in the international financial system”.
Despite a significant decline in the appraised value of the cryptocurrency market over the past year, the industry has undergone some positive changes. In particular, the arrival on the market of a class of institutional investors, improved regulation and the development of crypto-currencies as a new asset class. If we talk about specific events, we can highlight the inclusion in the industry and such financial institutions as the new York stock exchange, the Cboe and Goldman Sachs, bringing with him large sums of money, which was converted into cryptocurrency.
If these processes continue to occur with the same intensity, according to the assertions of the IMF, the financial system will be exposed to new risks. According to experts, more and more criminals are looking towards cryptocurrency platforms and come up with to break them quite complex ways.
“The theft of cryptocurrency is similar to the theft of cash, and the exchange will continue to be subjected to attacks for a long time. It is equally important to develop as a system to eliminate the consequences of hacker attacks, and various methods for their prevention,” commented Jung Jae-Jin (Jeon Jae-jin), Chairman of the South Korean Blockchain Association.
In the same South Korea, the cryptocurrency market which is deservedly considered the third largest after the USA and Japan, crypto currency exchange began to protect their assets with reliable insurance companies. And the American stock exchange Gemini in the beginning of the month has insured its assets in companies Aon, providing customers with protection similar to that in the traditional financial system.
This trend gives the experts from the International monetary Fund hope for reducing risk in a new and radically different from the traditional Finance sector.
Another positive point in the IMF report saw Emin gun Sirer (Emin Gün Sirer), Professor of Cornell University specializing in the blockchain and cryptocurrency. He noted that the mere recognition by the International monetary Fund cryptocurrency as a new asset class it is important for the industry.
We will remind that in April the managing Director of the IMF Christine Lagarde (Christine Lagarde) said that cryptocurrencies, especially bitcoin and ether, can have a serious impact on how people in the future will be to keep their savings, make investments and pay bills.