Managing Director of the International Monetary Fund (IMF) Christine Lagarde said that innovators in the blockchain technology market shake up the traditional world of finance.
Lagarde gave an interview to CNBC yesterday. She noted that the current distortions in the financial world have a clear impact on this area and transform the system from within. She pointed to JPMorgan Chase, which the bank wants to issue its own cryptocurrency, as well as new ECB initiatives that aim to provide immediate, virtually free value transfers. She also noted that “the transforming potential of blockchain technology has been mastered by regulators and central banks”, which recognize the positive impact of new inventions on the business model of commercial banks.
At the same time, the IMF chief also warned against certain threats related to cryptocurrencies:
“We must remember two things: trust and stability of the system […]. We do not want innovations that would shake the system so much that we would lose the stability we need. ”
Between fashion and revolution
Lagarde had already spoken out several times in the media about the cryptocurrency and blockchain. She previously characterized this market as something between fashion and revolution. It also acknowledges that cryptographic markets must be regulated by the same rules that apply to the traditional sector in order to protect consumers and ensure systemic stability.
On another occasion, she also confirmed that the regulation of cryptocurrencies is both inevitable and necessary, but at the same time she was in favor of the positive role of cryptocurrencies, which may contribute to deeper financial inclusion and offer an alternative to falling national currencies.
As early as 2017, Lagarde proposed that the IMF could benefit from “disruptive factors” and potentially broadcast its digital currency in the future.