IMF Chair Lagarde Urged Central Banks to Consider Issuing CBDCs

post image

IMF head Christine Lagarde has said «they» should think about emitting CBDCs — the digital currency that is distinct from mainstream cryptos. Moreover, she supported the «exploration» of such a digital form of fiat money. This might be a sign that the modern banking system is concerned with the increasing popularity of cyber-coins — bitcoins and its brethren. However, the IMF itself does not think so. 

IMF Director Implies Bank Should Go For CBDCs

This week at the financial technology event in Singapore the chair and managing director of the IMF, Christine Lagarde gave a speech, encouraging central banks to take a look at digital currencies. As CoinDesk has stressed, Lagarde pointed this out as the demand for fiat has gone down while the presence of cryptos — up. In particular, she said:

“I believe we should consider the possibility to issue digital currency. There may be a role for the state to supply money to the digital economy.”

At the same time, Lagarde noted that central banks around the world are looking into the issuance of CBDCs. For instance, central banks of Sweden, China, Uruguay and Canada have already got involved in the process. The IMF chair said both IMF and bank domain in these countries have stepped on a path of novel thinking and reforming. 

Lagarde About Cryptos

It is no surprise that in the view of the growing popularity of cryptos IMF has become concerned and informally called for exploration of alternatives. Even Lagarde signed out that such coins like BTC, ETH and XRP are competing for a place in the cash-free system. According to her words, these currencies continually change, hoping to become less volatile, speedier and cheaper. 

Nevertheless, the IMF does not consider cryptos as an alternative to CBDC and refer to it as the least attractive option among all forms of money. In a recent report, the organization highlighted that cryptos are not that fast due to technical restrictions. 

At the same time, Lagarde said digital currencies emitted by banks would be a «great promise.» 

Image Source: Flickr

What is a Security Token?
Security tokens became very popular, but do you really know what is STO?STO is Security Token Offering, which is identical to an ICO. In this, there are...
JPMorgan: Investors Should Keep an Eye on These DLT-Friendly Companies
If you are an investor, it might still be challenging for you to get exposed to DLT, unless, for sure, you are purchasing bitcoin. To ease the life of its...
10th BTC Birthday: All You Need to Know About Bitcoin
This year Halloween marked a decade since one of the most conspiracy currencies (if it is one) emerged. On October 31, 2008, right when the world was suffocating...
Bitcoin Mining is No Longer Profitable, Say Experts
It’s the sundown for BTC miners, some experts warn. As per their assessments, it is no longer lucrative to produce crypto-coins. Not As Before In particular,...
PayPal Wants to Create a System to Hasten Crypto Transactions
Everybody nowadays wants to participate in the blockchain innovative race. Recently, the American system, which operates global payments, PayPal has swollen...
Bank of America Admits it Might Not Withstand the Popularity of Cryptos
For quite a long time crypto experts have been warning financial establishments, banks in particular, that they might not be able to rival the growing power...
JAY-Z Invests In The Robinodod
Investing in the cryptocurrency is attractive not only to financiers but also to rappers, which is proved by Sean Carter himself, better known as rapper...
Investors Of Apple, Amazon and Google Decided To Support ICO Telegram
Famous Silicon Valley investment funds are planning to invest a lot of money in the ICO of the famous Russian telegram Telegram. This is published by the...
How Much Taxes You Owe If You Own Bitcoin. At Least If You Are an American
It does not matter whether you use the most known cryptocurrency in the world bitcoin for storing your funds or for making relatively quick and cheap transactions,...
Investor Altucher Believes Cryptos Will Override Some Or All Fiat Money
Bitcoin, the most outstanding cyber currency in the world, has all the chances to turn into an actual and practical investment which will significantly...
Bitstamp Got 30.000 ETH From Vitalik Buterin
Ethereum co-founder Vitalik Buterin transferred to the Bitstamp exchange 30 000 ETH, which at the current rate is almost $ 22 million. It is noteworthy...
Belarus Luring Foreign Investors by Bitcoin Legalization
In 2017, a lot of countries have been struggling over the legalization of Bitcoin, the blockchain, and ICO. However, out of a blue moon, Belarus has bitten...
11 Creative Christmas Gifts That You Can Buy for Bitcoin
Christmas and New Year holidays are almost here, so it’s quite a time to think about best gifts you can make for your loved ones. Wait, you want to buy...
Why Bitcoin Attracts Millennials
Last year the most influential banker, the president of the European Central Bank, Mario Draghi claimed that youth was struggling to get jobs in the EU....
Why Banks Should be Scared of Bitcoin
On December 15, Bitcoin hit a new record as it reached almost $18,000 on the Bitstamp exchange. At the same time, total market capitalization of all Bitcoins...