IMF Chief: Don't Trust Bitcoin

Christine Lagarde, managing director of the IMF, said Bitcoin could not be trusted reports the UK's Telegraph.

"Many of you in the [financial] industry are actually worried that those technologies are going to massively disrupt the current industry," she told a banking conference in New York.

"Pause for a second. As long as those new technologies are going to abuse and take advantage of the yield for anonymity, I think the banking industry has quite a few good days ahead of it; as long as it takes ownership of those issues of capital and culture in order to restore trust, without which no trade, no transaction, no business can take place."

I really don't know what the hell she means by "don't trust Bitcoin," but, as Jamie Dimon and Ben Bernanke, have noted, the government can put a lock down on most above-ground Bitcoin transactions. In other words, it won't be a generally used medium of exchange unless the government wants it to be for tracking purposes.

  -RW