Being billed as an alternate digital currency, cryptocurrency is a medium of exchange using cryptography to secure the transactions and to control the creation of new units.
Amidst bitcoin crossing the USD 10,000 mark in recent days, the White House today said it is monitoring the development while the International Monetary Fund underscored the need of regulations of cryptocurrencies.
Being billed as an alternate digital currency, cryptocurrency is a medium of exchange using cryptography to secure the transactions and to control the creation of new units.
Bitcoin, the first of these cryptocurrencies, over the Thanksgiving weekend has seen a major surge with a single unit being traded at more than USD 10,000.
“I know this is something that is being monitored by our team here,” White House Press Secretary Sarah Sanders told reporters at her daily news conference.
“We also believe that greater international discussion and, indeed, cooperation would be helpful, and as you may have noted, we, the IMF, have been trying to play a role in that regard,” he said.
Cryptocurrencies and their underlying technologies can have potential benefits, including the promotion of financial inclusion and more efficient payment and settlement processes, he said.
Investors in the US and globally have been investing massively in cryptocurrencies, bitcoin in particular.
“On the other hand, we have also alerted for, cautioned, that cryptocurrencies can also pose considerable risks as potential vehicles for such things as money laundering, terrorist financing, tax evasion and so on. So there’s a need for a balanced assessment of cryptocurrencies,” Rice said.
The White House said the development on the bitcoin front is being monitored by its homeland security team.
“I know it’s something that he’s keeping an eye on. And we’ll keep you posted when we have anything further on it,” Sanders said.
Source/More: White House says it is monitoring rise of cryptocurrencies; IMF seeks its regulation – Moneycontrol.com
