The Chief of IMF (the world’s leading financial authority) Christine Lagarde has praised Bitcoin saying that it could have a “significant impact on how we save, invest, and pay our bills.”
IMF Chief Christine Lagarde published a blog post on Monday called “An Even-handed Approach to Crypto-Assets” in which she discusses the merits of Bitcoin and how cryptocurrency could change our lives — just like the technologies that emerged from the dot-com era.
Lagarde has previously highlighted crypto’s “dark side.”
In another blog entry published in March, Lagarde discussed the “dark side” of cryptocurrency. As with most assessments of DLT, negative criticisms focused on the anonymity provided by decentralized technology and how misuse has the potential to facilitate crime and terrorism. Despite this, the post wasn’t overly negative regarding crypto, and the IMF chief highlighted the fact cash transactions pose similar problems. Last year she even made a speech at the Bank of England where she argued for an even-handed approach towards crypto that minimized risk while “allowing the creative process to bear fruit.”
Lagarde’s positivity on crypto doesn’t come as surprise, and in her latest blog post, she muses that DLT could make transactions faster, safer, and less expensive. She believes the ability to draw up self-enforcing smart contracts could play an important role by removing the need for intermediaries and that DLT’s ability to provide secure storage is promising for the medical world.
“…the fintech revolution will not eliminate the need for trusted intermediaries, such as brokers and bankers. There is hope, however, that decentralized applications spurred by crypto-assets will lead to a diversification of the financial landscape…” — Christine Lagarde
Despite the positivity, Lagarde does not think that the technology will completely remove the need for intermediaries, and, like other financial authorities, she does not believe it currently poses a threat to the financial system, and that global regulatory consensus will be necessary for crypto to disrupt the world of finance in a “meaningful and lasting way.”
What effect will Lagarde’s comments have on the crypto space?
Many are suggesting that Lagarde’s comments will have a positive impact on the space. The Independent suggested that Lagarde’s comments may have had some impact on the market’s latest uptick adding to other positive sentiments in the recent news.
The correlation between these events can be evidenced by the recent appreciation of Bitcoin, but it is difficult to prove to what extent the IMF chief’s comments were responsible (if at all). What is certain, however, is that Lagarde’s opinion is influential, and other financial authorities will be paying attention.
Michael is an English and Creative writing graduate of Liverpool John Moore’s University, a former editor of several magazines, and a crypto-currency enthusiast. He is mostly interested in crypto-legislation and the potential of decentralized technology to change the world.