What Christine Lagarde Thinks about Crypto…
“We are about to witness massive disruptions:” IMF’s Christine Lagarde.
The latest crypto trends require more serious considerations; financial influencers and professional hedge funds are increasingly focusing on the crypto space. In November 2018, Goldman Sachs began signing clients for its new bitcoin trading desk. In the same month, they invested in Silicon Valley’s blockchain security startup.
One of the most prominent world influencers, Christine Lagarde, strongly believes that not understanding cryptocurrencies can be riskier than adopting it. Despite all ponzi schemes and frauds, cryptocurrencies are significantly valuable for the future of many economies. As the IMF’s Leader, she outlines the following most important trends and challenges that crypto space has, as of today:
- Peer-to-peer transactions are a fast and inexpensive way to execute financial transactions. Morevoer, international transactions might simply take a few hours, instead of the bank-regulated 2 or 3 days (Source: Christine Lagarde).
- Blockchain technology enables efficient transactions and can eliminate middlemen from the process. The Australian Securities Exchange has established plans to use distributed ledger technology to manage equity transactions.
- Blockchain technology can protect data against hacking and unauthorized sharing. Many healthcare companies are already studying blockchain and its valuable application for secure data sharing.
Disrupting Developing Economies
- Many developing countries have the potential to attract more investments into their economies. Blockchain technology can help them increase market confidence, eliminate human error, as well as make all transactions transparent and secure, preventing any fraud. For example, the entire African continent can benefit from blockchain by simplifying systems and processes to lower costs.
“Understanding the risks that crypto-assets may pose to financial stability is vital, if we are to distinguish between real threats and needless fears. That is why we need an even-handed regulatory agenda, one that protects against risks without discouraging innovation.
A clear-eyed approach can help us harness the gains and avoid the pitfalls of the new crypto-assets landscape.” Christine Lagarde.
