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Financial Institutions Should Develop Frameworks For The Inclusion Of Cryptocurrency Says IMF Chief

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IMF and 24 Nations Working on Worldwide Regulations for Cryptocurrency
IMF and 24 Nations Working on Worldwide Regulations for Cryptocurrency

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Many prominent figures in the financial sector have come out and expressed a positive perception of cryptocurrencies.

The digital assets are on their way to become part of the mainstream economic systems of the world, and the support of top figures in the financial industry will go a long way in assisting crypto assets in their endeavor.

Christine Lagarde, a nominee to take over as the next president of the European Central Bank (ECB), said that financial institutions and central banks should make sure that they protect consumers against any harm that may come from crypto dealings, but they should also be open to financial innovations such as crypto assets.

Cryptocurrency trading on the web is growing in popularity, and there is a need for traditional financial institutions to accommodate these assets.

New technologies bringing new opportunities

Lagarde currently serves as the head of the International Monetary Fund, and she is tipped as the next president of the ECB.

She made the comments at the Economic and Monetary Affairs Committee of the European Parliament as she said that the concerned bodies should look at the opportunities presented by cryptocurrencies as a change in the right direction.

In her opening statement at the event, Lagarde said that new technologies such as digital currencies mean that those involved should be alert to the risks they present.

Some of the risks pertaining to financial stability, criminal activity, or privacy matters. Ensuring that there are appropriate regulatory frameworks in place for the new technology will be crucial for the good of the general public.

She concluded her opening statement by saying that this means looking at the broader social benefits that come from innovation and creating an environment for these benefits to developing.

ECB adoption of cryptocurrency

The presidential nominee promised the crypto community that if she becomes the ECB’s president, she will make sure that financial institutions develop policies that accommodate the shift in the world’s financial environment.

If digital assets are accommodated through the proper frameworks, it will give them the room they need to grow to their full potential.

According to a report by Cointelegraph, in February, Lagarde came out and said that cryptocurrency regulation is inevitable and that there is a necessity for this regulation to be applied on an international level.

She also said that blockchain technology is shaking traditional financial systems, and the technology has a definite impact on the industry’s players.

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