Christine Lagarde, who just happens to be the head if the IMF, is warming up to cryptocurrencies. Rather than focusing on the “darker side” of cryptos, she is now realizing that there is a vast sea of potential benefits in the adoption of digital currencies. In fact, she foresees a large-scale shift away from central bank-issued currencies toward cryptocurrencies. We all know there are way too many cryptocurrencies today (over 1,500), but there will be a severe shakeout while the underlying technology and premise will become much more entrenched.
Ms. Lagarde expects policymakers will begin to analyze why many of the 1,500 cryptos may ultimately fail and will step in with a more regulated framework that will allow risks to be minimized but still allow the creative juices to flow and innovate. Global governments have to realize that crypto-assets enable inexpensive, fast and convenient transactions being, well………almost better than cash. So, the IMF chief is really on top of the crypto innovation. Let’s hope leaders hear her voice.
(Bill Taylor/Managing Editor)
“IMF chief Christine Lagarde has dedicated her latest two blog posts on the official IMF website to cryptocurrencies. In her latest post, she outlines multiple benefits of crypto and envisages a large-scale shift away from government-issued currencies towards cryptocurrencies.
2 Blog Posts Dedicated to Crypto
The managing director of the International Monetary Fund (IMF), Christine Lagarde, dedicated a blog post on the IMF website to the benefits of cryptocurrencies on Tuesday.
This positive post follows her other post last month which she outlined the drawbacks from her viewpoint. Citing that she previously “looked at the dark side of crypto-assets, including their potential use for money laundering and the financing of terrorism,” Lagarde proceeded to say:
“Here, I want to examine the promise they [cryptocurrencies] offer. A judicious look at crypto-assets should lead us to neither crypto-condemnation nor crypto-euphoria.”
She acknowledged the many cryptocurrencies in circulation and said, “it seems inevitable that many will not survive the process of creative destruction.” According to Coinmarketcap, there are currently 1,568 cryptocurrencies.
“The crypto-assets that survive could have a significant impact on how we save, invest and pay our bills,” the IMF chief believes. “That is why policymakers should keep an open mind and work toward an even-handed regulatory framework that minimizes risks while allowing the creative process to bear fruit…”