The managing director of the International Monetary Fund (IMF), Christine Lagarde, stated at the Singapore Fintech Festival today that the use of Cryptocurrencies can help governments around the world establish the much sought-after financial inclusivity, consumer protection and better security, all relieving the growing concerns over privacy issues.
Ms. Lagarde pointed out that financial institutions are not properly serving the underprivileged and poor people, especially in rural areas. Cryptocurrencies can play a crucial role in solving this niche market by motivating governments to better serve their communities. The gap between the goals of private and public companies is ever growing, especially in countries such as China and Uruguay, both of which are considering of establishing their own Digital Coins.
The IMF Chief also stated that the role of the money has been changed due to financial revolution represented by fintech, AI and digital money overall. The way people use money has also changed. Cryptocurrencies can come in handy for people paying small amounts of money through their phones, for example.
Lagarde called on to governments to lead the way in alleviating the needed infrastructure for supporting the integration of digital coins, saying:
“Resilience may also suffer. With only a few links in the payment chain, the system may stop working if one of these links breaks. Think about a cyber attack, a glitch, bankruptcy, or a firm’s withdrawal from the local market.”
According to Lagarde, private and public institutions must work together to allow for a better financial inclusion and innovation. In her words, public-private partnership is the best form to achieve this goal.
The fact that the IMF has expressed such a positive opinion on the future of digital coins and their eventual integration into both public and private life can only speak about the enormous potential of cryptocurrencies and their development.
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The IMF is bullish on the use of cryptocurrencies was first posted on November 14, 2018 at 8:21 pm.