Christine Lagarde, talking about the benefits of the cryptocurrency Savings.
Apr 20, 2018 Posted / 921 Views
The managing director of International Monetary Fund, Christine Lagarde, previously believed that Bitcoin and all the other related cryptocurrencies were mainly used for all kinds of illicit activities. But as time passed she has seemed to realize that the technology is also paving ways for the development of the community. Which has led her to change her mindset towards the cryptocurrency community.
Recently her official blog post represented a positive outlook towards the cryptocurrency market. Along with which she also cautioned people about the Crypto condemnation and crypto-euphoria. Also, the French lawyer suggests people make rational and informed decisions towards the regulation of the cryptocurrency market.
There is a huge ocean of various kinds of fraudulent projects on the cryptocurrency foundation which will never see the light of day. But the cryptocurrency is still having a huge impact on the lives of people by offering services like never before.
Also Lagarde, in her official blog post said,
“Just as a few technologies that emerged from the dot-com era have transformed our lives, the crypto-assets that survive could have a significant impact on how we save, invest and pay our bills. That is why policymakers should keep an open mind and work toward an even-handed regulatory framework that minimizes risks while allowing the creative process to bear fruit.”
She was consistently observed to be positive about the cryptocurrency activities. She also highlighted the benefits of faster and inexpensive cross-border payments by the application of Bitcoin who's underlying distributed Ledger technology can be exploited in a very positive way for the developmental purposes. She also added that it can revolutionize the financial world by the way it works.
She has also expressed her positivity on the smart contracts by the way in which they are automatically executed and self-enforcing which removes all kinds of intermediaries from the scenario. Additionally, the application of blockchain technology to store the important documents has become the icing on the cake.
At last, the director of IMF concludes that “In developing economies, such advances can help secure property rights, increase market confidence and promote investment.”
Since she still cautions about the crypto euphoria, it seems that she might still be in a doubt pertaining to the digital assets. Which she attempts to explain, “In my view, 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, a better balance between centralized and de-centralized service providers, and a financial ecosystem that is more efficient and potentially more robust in resisting threats.”
It is observed that she has also realized that the threat posed by the cryptocurrency market towards the traditional Financial Institutions is relatively small. She continues,” Our preliminary assessment is that, given their still-small footprint and limited links to the rest of the financial system, crypto-assets do not pose an immediate danger. Even so, regulators should remain vigilant: crypto-assets have the potential to magnify the risks of highly leveraged trading, and to increase the transmission of economic shocks should they become more integrated into mainstream financial products.”
In a nutshell, her opinion of the cryptocurrency is that it is not here to stay, as nothing is permanent and change is inevitable.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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