Christine Lagarde, the head of the International Monetary Fund has recently released some positive remarks in favor of cryptocurrency. In one of her recent blog posts, she encouraged the implementation of open-minded policies for cryptocurrencies.
The blog post highlights Lagarde’s current soft stance on cryptocurrencies and it comes just a few weeks after she warned about the dark side of digital currencies. In her new blog post, the IMF leader points out that there are potential benefits to be had through the use of cryptocurrencies such as Bitcoin.
Lagarde wrote in the blog post that: “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.”
The IMF Head pointed out the fact that cryptocurrencies are fast and inexpensive, meaning they are ideal for financial transactions and payment services. She also noted that privacy-centric cryptocurrencies carry more risk. This comes amid worries that privacy coins are encouraging more social evils such as funding terrorism, facilitating the sale of drugs and money laundering.
Lagarde also believes that cryptocurrency will provide a better balance in the financial industry and that it represents the next step in the evolution of the fintech industry. This is because cryptocurrencies eliminate the need for intermediaries. She also claims that it will facilitate more diversity within the financial landscape through more efficiency and security.
The post by the IMF boss points to the fact that authorities are slowly becoming convinced that cryptocurrency might be the future of monetary systems. However, there is still a long way to go before cryptocurrency becomes widely accepted. There are many issues that need to be addressed such as taxation and other legal issues which means lawmakers will have to come up with policies for such.
At the moment, there are mixed reactions with some countries taking an aggressive stance against the cryptocurrency market. Lagarde’s post is expected to encourage a positive outlook and further developments.
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