IMF Chief Christine Lagarde commented that the blockchain tech is changing the financial world. According to her, the operations of the players are shaking the foundations of the financial industry and impacting incumbent players.
The IMF Chief made these comments when she was interviewing with CNBC. This was during the 2019 Spring Meetings between the IMF and World Bank Group in D.C. The IMF chief was moderating the meeting which was a “Money and Payments in the Digital Age” panel.
There were other contributors to the panel discussing the digital age and payment. People like Jeremy Allaire, the CEO of Circle-a cryptocurrency finance firm were there. Another contributor was the Chief of Consumer and Community Banking, Sarah Youngwood. Other prominent names in the financial industry were also present.
Lagarde Observations About The Blockchain Operators
The chief of the IMF stated that the financial disrupters are reshaping the face of the industry. Their activities are influencing the decisions of incumbents in the industry. She made instances of both ECB initiatives and JPMorgan Chase’s plans to launch a digital coin. According to her, people who are engaging in various blockchain operations are shaking the financial system. Lagarde also stated that the central banks and other regulators are seriously embracing the blockchain technologies and their assets. These institutions according to the Chief have recognized the positive contributions which the tech can make to commercial banks.
However, Lagarde has some misgivings about the technology. According to her, the industry should remember the two important factors keeping them afloat which are stability and trust. She continued to say that operators in the financial industry should not allow innovation to remove stability from the system. The IMF Chief believes that stability is necessary for the financial industry to continue its operations successfully.
Previous Reports On Lagarde Stance
Recalling the past comments made by the IMF Chief about cryptocurrency, she characterized it as either a revolution or a fad. According to her, crypto markets should operate under the same laws that guide the operations of the traditional financial sector. She believes that taking such measures will protect the consumers who buy crypto and ensure that the system remains stable.
Largade did not hide her stance on cryptocurrency regulation. She affirmed that it is necessary to regulate the entire crypto market. As far as she knows, the regulation will also come to exist. Also, the Chief of IMF has on many occasions pointed out that the distributed ledger tech is also impactful. She had previously mentioned and encouraged the role which digital coins can play in achieving wider financial inclusion. Lagarde also pointed out in the past that the cryptocurrencies can be a good alternative to depreciating national currencies.
Last two years, the same Chief Largade proposed a venture to the International Monetary Fund. She advised the fund to consider releasing a digital asset just as the disruptors are doing.
We agree that stability is necessary for the industry. However, we believe that the distributed ledger tech is a welcome development.