LONDON, ENGLAND – Christine Lagarde, Managing Director of the International Monetary Fund (IMF) has publicly come out in favor of cryptocurrencies after she commented on the matter during a conference in London earlier this week.
“In many ways, virtual currencies might just give existing currencies and monetary policy a run for their money. The best response by central bankers is to continue running effective monetary policy, while being open to fresh ideas and new demands, as economies evolve.”
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Lagarde continued to address potential circumstances in which a country might use crypto noting that the technology would be particularly useful to nations with “weak institutions and unstable national currencies.”
“Instead of adopting the currency of another country, such as the U.S. dollar, some of these economies might see a growing use of virtual currencies. Call it dollarization 2.0,” said Lagarde.
Largarde believes these technologies are a distant possibility. Like many, she believes cryptocurrencies are “too volatile, too risky, too energy intensive, and the underlying technologies are not yet scalable.”