IMF Chief Economist Advises Regulatory Diligence on Libra

IMF Chief Economist Advises Regulatory Diligence on Libra
July 18, 2019


The cryptocurrency market remains mostly in the green with altcoins making great advances. Notably, Bitcoin (BTC) has fallen below the psychological level of $10,000. The king of cryptocurrencies touched a low of $9,190 yesterday before recovering to $9,776, representing a gain of 4.2%. However, Bitcoin has lost 19.9% compared to last week’s close. Almost all the major altcoins are trading with a gain in the past 24 hours, but a loss on a weekly basis. Ethereum (ETH), which is the most preferred blockchain for deploying smart contracts, has gained 8.3% in the past 24 hours to trade at $213.80. Similar to Bitcoin, it trades with a loss of 26.7% compared to last week.

Other major altcoins which are trading with considerable gains in the past 24 hours include Bitcoin Cash (BCH-$294.75, 3.9%), Binance Coin (BNB-$27.75, 11.2%), Monero (XMR-$76.77, 4.7%), Tron (TRX-$0.0231, 9.8%), Huobi (HT-$4.02, 0.1%), Cosmos (ATOM-$3.95, 7%), NEO (NEO-$11.02, 8.8%), IOTA (MIOTA-$0.2905, 7.6%), Litecoin (LTC-$89.53, 13.8%), Stellar (XLM-$0.0814, 3.4%) and Dash (DASH-$103.89, 5.8%).


Government level initiatives

France is making headway with its new ICO regulations

With new regulations, France is making headway in approving firms which raise funds through initial coin offerings (ICO). The new regulations are anticipated to become effective later July, enabling crypto-related companies to willingly conform to state norms on capital prerequisites, consumer safety, and taxation in exchange for regulator’s approval.

Anne Marechal, executive director for legal affairs at the Financial Markets Authority (AMF), stated that the daring crypto regulatory plan from the country holding the presidency post of G7 countries forum would make it a leader in the sector. She further stated: “France is a precursor. We will have a legal, tax, and regulatory framework […] We are in talks with three or four candidates for initial coin offerings.”

Marechal disclosed that besides the firms raising funds through ICOs, the AMF is also in discussions with many crypto exchanges, custodians, and fund managers. It seems that reports about the planned launch of stablecoin Libra cryptocurrency by the US tech giant Facebook has fueled the initiative to bring about better legal transparency for the under-regulated industry.

Despite the transatlantic trade war, at the G7 finance ministers meeting in Chantilly, France’s Bruno Le Maire and the US Treasury Secretary Steven Mnuchin may reach a mutual understanding on cryptocurrencies and Facebook’s Libra in particular.


Private sector initiatives

IBM the largest blockchain patent filing company in the US

The number of blockchain-related patents secured by multinational software giant IBM has tripled in the US since 2018, with 108 active patent groups. The extraordinary performance has made IBM the number one company in the US with regard to patent filing. As per information obtained by Yuval Halevi, co-founder of crypto and blockchain PR company GuerillaBuzz, the number of active patent groups filed by IBM overshadows other prominent enterprises including Microsoft, Dell Technologies, and Intel.

“In just one year, the number of IBM blockchain patents has grown by 300%. When one of the largest companies in the world (366,000 employees) spends so much of their resources on developing a blockchain department, this tells a lot about the market potential.”

Even then, IBM does face challenges from Chinese enterprises outside the US. China is making great strides in terms of blockchain patents. Specifically, Alibaba leads blockchain patent filing in China even though it has filed only 25 patents in the US.


R3 collaborates with Banco Maré

Blockchain consortium R3 has collaborated with Banco Maré, a Brazilian fintech firm, to unveil a stock exchange for investing in tech-related firms. Banco Maré aims to develop a tokenized stock exchange which facilitates investments in tech enterprises with social impact. The latest R3 technology-based software, temporarily named BVM12, will act as a funding platform for technology startups and also permit individual investors to receive dividends from investments in such high tech firms.

In this regard, Rio de Janeiro-based Banco Maré has carried out its initial discussions with the Brazilian Securities and Exchange Commission and intends to place a formal request to the organization in August 2019.

Alexander Albuquerque, CEO of Banco Maré, has pointed out that the latest project intends to create an even playing field for speculative investment and draw the low-income people to the equity market.



IMF suggests regulators monitor Facebook’s Libra

The International Monetary Fund (IMF) has suggested regulators across the world closely monitor and initiate appropriate regulatory action on Facebook’s Libra. IMF’s Chief Economist, Gita Gopinath, asked the authorities to have a close look at Facebook’s crypto venture during the initial stages of development. Ms.Gopinath stressed that financial regulators should take action as soon they find any deviations without any delays.

The IMF Chief Economist further briefed the threats posed by Facebook’s stablecoin, including worries over data anonymity, consumer safety, and also “backdoor dollarization.” However, the IMF economist acknowledged that Libra could assist in promoting financial inclusion.

Notably, the United States House of Representatives Financial Services Committee opened a hearing on Facebook’s Libra yesterday. Legislators in both the House and Senate condemned Facebook’s past approach in ensuring data privacy and consumer safety.

Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.



Janine is our editor for related stock market news. Andrew and Janine will be focusing on providing the latest trends and where the next hit could be

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