Topic: [2017-09-29] Christine Lagarde: Ignoring Cryptocurrencies 'May Not Be Wise' (Read 1887 times)
October 02, 2017, 09:31:20 AM
'Dollarization', that's a new phrase for the cryptocurrency sector - "Call it dollarization 2.0" - for sure from Christine Lagarde.
October 02, 2017, 05:48:10 AM
To be honest, I really found this woman very refreshing and to think that she is heading an institution of finance known to be rigid and representing the status quo. Well, I am now a big fan of IMF chief Christine Lagarde. I don't know about her but just reading this article I can see that she is also a revolutionary one...who is open to many ideas and not just sticking to ideas already proven to be not working. I am making a bow to this powerful woman and just now am reading something about her life before coming at the helm of the IMF.
October 02, 2017, 02:33:08 AM
The head of the International Monetary Fund (IMF) believes that cryptocurrencies may give traditional government-issued ones a "run for their money."
Speaking at a conference in London, IMF chief Christine Lagarde told attendees that she thinks "it may not be wise to dismiss virtual currencies."
Notably, she outlined possible scenarios in which a country – particularly those with "weak institutions and unstable national currencies" might actually embrace one more directly.
"Instead of adopting the currency of another country – such as the U.S. dollar – some of these economies might see a growing use of virtual currencies. Call it dollarization 2.0," she said.
One of the driving factors behind that potential evolution would be a shift in consumer preference for new currencies that are "easier and safer" than existing ones. That scenario could be further hastened if cryptocurrencies "actually become more stable," she said.
Lagarde went on to say:
"So in many ways, virtual currencies might just give existing currencies and monetary policy a run for their money. The best response by central bankers is to continue running effective monetary policy, while being open to fresh ideas and new demands, as economies evolve."
That said, Lagarde noted earlier in her speech that such an outcome is, in her view, a distant prospect, saying that cryptocurrencies are "too volatile, too risky, too energy intensive, and because the underlying technologies are not yet scalable."
To date, the IMF has advocated a balanced approach on cryptocurrency regulation, voicing that position in a January 2016 staff paper. Lagarde has also voiced support for financial applications of blockchain, a subject that the IMF has explored on an organizational level as well.
https://www.coindesk.com/imf-head-christine-lagarde-it-may-not-be-wise-to-dismiss-virtual-currencies/
Speaking at a conference in London, IMF chief Christine Lagarde told attendees that she thinks "it may not be wise to dismiss virtual currencies."
Notably, she outlined possible scenarios in which a country – particularly those with "weak institutions and unstable national currencies" might actually embrace one more directly.
"Instead of adopting the currency of another country – such as the U.S. dollar – some of these economies might see a growing use of virtual currencies. Call it dollarization 2.0," she said.
One of the driving factors behind that potential evolution would be a shift in consumer preference for new currencies that are "easier and safer" than existing ones. That scenario could be further hastened if cryptocurrencies "actually become more stable," she said.
Lagarde went on to say:
"So in many ways, virtual currencies might just give existing currencies and monetary policy a run for their money. The best response by central bankers is to continue running effective monetary policy, while being open to fresh ideas and new demands, as economies evolve."
That said, Lagarde noted earlier in her speech that such an outcome is, in her view, a distant prospect, saying that cryptocurrencies are "too volatile, too risky, too energy intensive, and because the underlying technologies are not yet scalable."
To date, the IMF has advocated a balanced approach on cryptocurrency regulation, voicing that position in a January 2016 staff paper. Lagarde has also voiced support for financial applications of blockchain, a subject that the IMF has explored on an organizational level as well.
https://www.coindesk.com/imf-head-christine-lagarde-it-may-not-be-wise-to-dismiss-virtual-currencies/
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