IMF: Lagarde emphasizes the advantages of cryptocurrency

The Director of the International Monetary Fund (IMF), Christine Lagarde, stressed at a conference in London that it would be wrong to ignore Cryptocurrency.

At the same time, Ms Lagarde pointed out the chances that Cryptocurrency can offer against Fiat treaties. Especially in countries with weak institutions and a weak currency, Cryptocurrency could be put to good use, according to Lagarde. In this context, dollar dependency could also be reduced for many countries as "dollarization 2.0" could create new, virtual alternatives to the US dollar or else to other national currencies.

Although not directly addressed by Lagarde, the country of Venezuela, of course, is experiencing an intense boom in Cryptocurrency. This boom is, however, necessary, since Bolivar's currency has essentially no value and purchasing power, and cryptocurrency is easier to obtain against the US dollar. From this macroeconomic weakness, therefore, a "crypto-economy" arises, as Lagarde has addressed in her speech.

Decisive for the adaptation of cryptocurrency is, however, their consumer friendship. By means of an increasingly simple and secure handling, a mainstream adapter can be advanced. According to Lagarde, the decision on the future of the cryptocurrency is also more stable and less volatile.

Lagarde also sees a positive side effect of crypto currencies in that Cryptocurrency that can increase the pressure on central banks. Finally, Cryptocurrency can bypass the bank monopoly and represent an alternative. The worse the central bank policy, the greater the risk that people will turn their attention to Cryptosis. This new competition has made it even more important for central banks to implement an efficient and reliable central bank policy.

With all the optimism, Lagarde also advised that cryptocurrency still has a long way to go, since they are "still still too volatile, risky, energy-intensive and too scalable."

Overall, however, it can be said that the IMF, at least represented by Lagarde, refers to an objective neutral to positive position on Cryptocurrency.

http://www.currency-echo.com