Head of IMF Urges Governments to Consider Issuing Digital Currencies
Head of IMF Urges Governments to Consider Issuing Digital Currencies
http://www.ahijackedlife.com/imf-chief-calls-for-exploration-of-digital-currencies/
https://www.coindesk.com/imf-chief-lagarde-calls-for-exploration-of-state-backed-digital-currencies
Winds of Change: The Case for New Digital Currency
November 14, 2018
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Introduction
Distinguished guests, ladies and gentlemen—good morning and thank you for the opportunity to participate in this important event.
In Singapore, it is often windy. Winds here bring change, and opportunity. Historically, they blew ships to its port. These resupplied while waiting for the Monsoon to pass, for the seasons to change.
“Change is the only constant,” wrote the ancient Greek philosopher, Heraclitus of Ephesus.
Singapore knows this. You know this. It is the true spirit of the Fintech Festival—opening doors to new digital futures; hoisting sails to the winds of change.
And yet change can appear daunting, destabilizing, even threatening. This is especially true for technological change, which disrupts our habits, jobs, and social interactions.
The key is to harness the benefits while managing the risks.
When it comes to fintech, Singapore has shown exceptional vision—think of its regulatory sandbox where new ideas can be tested. Think of its Fintech Innovation Lab, and its collaboration with major central banks on cross-border payments.
In this context, I would like to do three things this morning:
- First, frame the issue in terms of the changing nature of money and the fintech revolution.
- Second, evaluate the role for central banks in this new financial landscape—especially in providing digital currency.
- Third, look at some downsides, and consider how they can be minimized.
Think About It
The head of one of the world’s most influential financial organizations just threw her weight behind digital currencies.Christine Lagarde is the head of the International Monetary Fund, an organization dedicated to ensuring the stability of the global economy. On Wednesday, she gave a speech at a financial tech conference in Singapore, where she suggested that governments take a good hard look at cryptocurrencies and other digital currencies.
“I believe we should consider the possibility to issue digital currency,” Lagarde said. “There may be a role for the state to supply money to the digital economy.”
If the government knows how to do things, I believe that the implementation of digital currencies would be a success for the great majority of nations.