The head of the International Monetary Fund (IMF), Christine Lagarde, believes that bitcoin and other crypto-currencies do not pose a threat to the world’s central banks and fiat currencies. Christine Lagarde has warned that central banks and financial services need to pay closer attention to cryptocurrencies. Speaking to CNBC, she said:
“I think that we are going to see massive violations.”
Central banks and financial institutions around the world are increasingly watching the fast-growing digital currency market, and are looking to the technology of the block-system on which crypto-currencies are based. K. Lagarde suggested that blocking technology can one day be used by the IMF in the special drawing rights allocation system (SDR).
Christine Lagarde said: “What we will be looking into is how this currency, the Special Drawing Right, can actually use the technology to be more efficient and less costly.”
Earlier, the head of the US bank JPMorgan, James Dimon, spoke sharply against bitcoin, calling the crypto currency “fraud.” Lagarde argued that distributed ledger tech (DLT) could be used as a means to combat financial fraud and funding of terrorism. According to K. Lagarde, people will at some time prefer virtual currencies, because they will become “easier and safer than banknotes, especially in remote regions, and also because these currencies can become more stable over time.”
The head of the International Monetary Fund advised: “It’s a lot more than that as well.”