Daily Management Review

It's Time To Get Serious About Digital Currency, IMF's Lagarde Says


10/18/2017




It's Time To Get Serious About Digital Currency, IMF's Lagarde Says
According to the head of the International Monetary Fund, world's central banks and regulators now need to get serious about digital currencies as it is time when this currency would exert greater influence.
 
According to IMF Managing Director Christine Lagarde, emerging financial tech products that are already starting to shake up the financial services and global payments system are not being watched and given attention to by global financial institutions which is increasing risks for those institutions.
 
"I think that we are about to see massive disruptions," Lagarde told CNBC in a Facebook Live interview on the sidelines of the IMF Annual Meetings in Washington D.C.
 
Lagarde said it's important to look at the broader implications of technologies like digital currencies while replying to a question on whether she agreed with JP Morgan Chase CEO Jamie Dimon’s comments that bitcoin is a "fraud."
 
"I think we should just be aware of not categorizing anything that has to do with digital currencies in those speculation, ponzi-like schemes," she said. "It's a lot more than that as well."
 
There are speculations that its own cryptocurrency could be developed at some point in time by the IMF, and these speculations were not ruled out by Lagarde. Technology similar to cryptocurrencies could be incorporated into the IMF's Special Drawing Right (SDR), a currency the IMF created to serve as an international reserve asset, she pointed out while answering to the speculations of the international fund developing its own cryptocurrency.
 
"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," she said.
 
These comments were also reiterated by Lagarde while moderating a panel discussion featuring central bank officials and executives from fintech companies and the gathering was focused on fintech and the role of central banks. the IMF will play a role in regulating the fintech industry going forward, expects Lagarde, she said.
 
"My hope is that we can participate in that process because I see that as a very cross-border process," she said.
 
As new technologies lower the cost of financial transactions, Fintech is already causing disruptions in the financial services industry, Lagarde said. The banking system could be helped to be made more inclusive by distributed ledger technology like blockchain, she pointed out.
 
"I think of women in some of the developing countries that have to carry cash around who are at risk of violence and all the rest of it," she said. "If they can use their cell phone and operate in a much more discreet and efficient way, it would be terrific."
 
(Source:www.cnbc.com) 






Science & Technology

Apple to present Netflix competitor at the end of March

Live Human Under-Skin Chip Implantation Takes Place At Barcelona

IDC: Wearable tech gadgets market is booming

Second Patient In 12 Years Becomes HIV Free By Bone Marrow Transplantation

Car-Sharing Platforms Could hold The Key To 5G & Auto Industry Collaboration

Bezos tells about his space plans

Fast Company: Apple isn't the most innovative anymore

U.S. Space Program Could Be Delayed Due To SpaceX, Boeing Design Risks: Reuters

What trends will be affecting the health sector in the coming years?

Deloitte identifies main cyber threats for power industry

World Politics

World & Politics

Largest companies reveal volumes of plastic produced by them

US Warning To Germany About Intelligence Sharing Over Huawei Ban

Mercer reveals the world’s safest cities

No vaccinations, no school: Italy’s new law

Why the new Aachen Treaty cannot save France-Germany relation

The Netherlands and France are arguing over Air France-KLM

Study: 6 of the 10 healthiest nations of the planet live in Europe

Countries On Huawei Technology Systems Won’t Be On U.S. Partner List