Last updated on March 6th, 2018 at 11:01 am
Lesetja Kganyago, the incoming chair of the International Monetary Fund’s policy advisory committee, says cryptocurrencies pose no threat to the reserve currencies of the world.
The backing of central banks to protect the value of their currencies is crucial, Kganyago said in an interview with Business Insider South Africa.
“If the rand loses value, there is someone you can shout at because they [the central bank]stand behind the currency. Unlike with bitcoin, for instance, and its anonymous creator,” the governor said.
Kganyago is also concerned about the unregulated nature of cryptocurrencies, which could lead to criminal activity including tax evasion, money laundering, and cybercrime.
Eulogy made by Lesetja Kganyago