The official blog of the International Monetary Fund (IMF) changed its perspective on cryptocurrencies from “the dark side of cryptocurrencies”, as published in an article in mid-March, to “the promise cryptocurrency holds”, in a note signed by Christine Lagarde, the IMF’s leader, recently.
According to the French lawyer, Christine Lagarde, currently the leader of the IMF, “with more than 1,600 cryptocurrencies in circulation, it is inevitable that many will not survive the process of creative destruction”, but “just as some of the technologies born out of the computer bubble have changed our lives, the cryptocurrencies that survive could significantly influence the way we save, invest and pay our bills.”
“That’s why the authorities should be open-minded and develop an impartial regulatory framework that reduces risks while allowing the creative process to bear fruit,” Lagarde added.
The IMF changed its point of view regarding cryptocurrencies and Christine Lagarde’s statements prove it
With regard to the benefits provided by cryptocurrencies, Lagarde was remarkably positive, admitting that cryptocurrencies make quick and inexpensive financial transactions possible.”
The IMF director general added that the technology on which cryptocurrencies are based, known as distributed general ledger, could facilitate a more efficient functioning of financial markets through the execution of smart contracts.
Christine Lagarde also highlighted the capacity for encrypted storage of important records in order to protect the property rights, strengthen the market confidence, or promote investments.
The IMF’s leader admitted that smart contracts “could eliminate the need for some intermediaries” but in her opinion “the ‘FinTech’ revolution will not eliminate the need for trusted intermediaries such as brokers and bankers.”
In short, Lagarde believes that cryptocurrencies “will propel the business world to a better balance between centralized entities and decentralized applications”, thus proving that IMF’s views regarding the cryptocurrencies market have changed radically in just a few months.
Jackson Bey was born and raised in Lethbridge Alberta but moved east when he was 22. Apart from running his own consulting firm. Jackson spends his time canoeing the many lakes of Ontario. As a financial journalist Jackson has published stories for CBC Business Online, as well as Buzz Feed and Motherboard. As a contributor to Billionaire 365, Jackson mostly covers markets and trade.