Christine Lagarde stated the benefits of cryptocurrencies and blockchain
The head of the International Monetary Fund (IMF), Christine Lagarde, spoke optimistically about the cryptocurrency, saying that they "do not pose an immediate danger," and their regulation is appropriate "in a balanced manner."
"Here, I want to examine the promise they offer. A judicious look at crypto-assets should lead us to neither crypto-condemnation nor crypto-euphoria," said Lagarde.
It's a very even-keeled message, at times sounding like a seasoned blockchain developer who is not sticking their head in the sand about the risks but also can't deny the role that cryptocurrencies will play in the future.
"Just as a few technologies that emerged from the dot-com era have transformed our lives, the crypto-assets that survive could have a significant impact on how we save, invest and pay our bills. 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," she said.
Lagarde believes that a blockchain can help financial markets operate more effectively by using self-executing and self-affirming "smart contracts" that will eliminate the need for intermediaries.
She added that using cryptocurrency would lead to a diversification of the financial landscape, which will improve the balance between centralized and decentralized service providers, and a financial ecosystem that will be more efficient and potentially more reliable.
Lagarde recalled investor risks, but in general, her message was positive.
