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IMF Lagarde calls for open cryptocurrency and open hand policies


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Cryptocurrencies are growing on Christine Lagarde, head of the IMF.

The price of bitcoin is trading again in the green today and, curiously, it can be drawn from some positive remarks from Lagarde, who heads the International Monetary Fund (IMF). His message to the world is that "crypto-actives are not an immediate danger", have always said market players.

In his latest blog article, Lagarde explores the promise that cryptocurrencies have to offer, an optimistic vision that reflects a change of tone of regulatory agencies. Lagarde calls for a "balanced approach" cryptocurrence, which does not pull the carpet of the market and also does not suggest to jump two feet.

For example, it has drawn attention to the risks of leveraged trading where investors can accumulate debt and the possibility that cryptocurrencies present a systemic risk to the economy at any given time . But above all, his message was happy.

"Here I want to look at the promise they offer." A judicious look at cryptographic assets should not lead us to either crypto-condemnation or crypto-euphoria, "said Lagarde.

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This is a very balanced message, which sometimes looks like a seasoned blockchain developer who does not care about the risks but can not deny the role crypto-currencies play in the game. the future.

"Just as some technologies from the dot-com era have transformed our lives, surviving crypto-assets could have a significant impact on how we save, invest and pay for our lives. This is why decision makers need to keep an open mind and work towards an impartial regulatory framework that minimizes risks while allowing the creative process to bear fruit, "said Lagarde.

Evolution of Lagarde

Lagarde has more and more accepted bitcoin over the years, from reassuring banks "not to worry" about blockchain and bitcoin, to associate the market with fraud and anti activity – laundering, to warn financial institutions that cryptocurrencies could be the big disruptor of banks.

There are still traces of the old Lagarde, with the IMF in the blog making comparisons between bitcoin, the Dutch mania tulip of the 1600s and the dot-com bubble. But compared to her recent speeches, she also offers a more measured approach to the cryptocurrency market that demonstrates a sudden and open approach to the rise of digital currencies.

For example, she suggests that with over 1600 cryptocurrencies currently available, there is a lot of moss and many "will not survive the process of creative destruction," which is reasonable to suggest that only the strong will survive. . It also embraces the potential that crypto-currencies have to offer, highlighting the attractive features of cryptos, whose leader is "fast" and "inexpensive".

Lagarde suggests that Distributed Register Technology (DLT) could help banks operate more efficiently, which Ripple and Santander have already proven. She highlighted the benefits of smart contracts, admitting that they eliminate friction in the banking system. Not wasting time, Lagarde recognized sectors of the economy such as health and real estate and regions such as Ghana where DLT technology could enhance security.

Lagarde still sees a role for brokers and bankers in financial services, but re-emphasizes the balance that could exist between "centralized and decentralized service providers".

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