2min chapter

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Tobias Adrian: Cross-Border Payments for the 21st Century

IMF Podcasts

CHAPTER

Cryptocurrency and Common Ledgers - What Are the Problems?

Many crypto assets are not tied to fundamental volume. They're purely speculative, so you can see values go up and down. The consensus mechanism on these blockchains means that you don't have a finality of payments. And then thirdly, it has a lack of identity. So Bitcoin is fundamentally constructed to be anonymous in order to evade governments. From a government or a policy perspective, you want to have identity because you want to make sure that whoever makes those payments is responsible for the payments he or she makes.

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