By: Alexander Paul | PlanetFreeWill.com
Managing Director of the International Monetary Fund, Christine Lagarde, told CNBC that the attributes of cryptocurrency like Bitcoin has already caused massive disruptions in the financial services industry and the IMF may soon play a role in the regulation the new type of fintech.
“I think that we are about to see massive disruptions,” Lagarde said.
“The way in which the new technologies are lowering the cost to make financial transactions more accessible, even in very small numbers, for people who do not earn much, who do not deposit much, and who do not borrow much, and how those technologies can actually have a track record of the credit history of somebody in a very short while and then be able to direct those people towards the best use of their money … I think is already massively disruptive,” the IMF head continued.
Lagarde was moderating a panel discussion on Thursday focused on fintech and the role of central banks, featuring central bank officials and executives from fintech companies. Lagarde told CNBC she expects the IMF will play a role in regulating the fintech industry as it moves forward.
“My hope is that we can participate in that process because I see that as a very cross-border process,” she said.
When asked whether she agreed with JPMorgan Chase CEO Jamie Dimon’s comments that bitcoin is a “fraud,” Lagarde pointed to the broader implications of the tech, saying that there should be some restraint to slap such labels on it.
“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.”
The IMF has recently put together a group called the High-Level Advisory Group on FinTech that has been tasked to work with the IMF’s Interdepartmental Working Group on Finance and Technology to study the economic and regulatory implications of blockchain and other developments in financial technology. The group consists of many blockchain company heads, including Chris Church, chief business development officer at Digital Asset, and Ryan Zagone, director of regulatory relations at Ripple. A Blockchain in the decentralized and distributed digital ledger used to carry out the functions of digital currency networks.
Bitcoin, the worlds largest digital currency by both market cap and price per unit, hit all-time highs this week shooting over the $5,800 mark before retreating slightly slower this morning.
Alexander Paul is a contributor for PFWnews. “In our age there is no such thing as ‘keeping out of politics.’ All issues are political issues, and politics itself is a mass of lies, evasions, folly, hatred and schizophrenia.” – George Orwell