The head of the IMF urged to think about the release of national digital currencies
The head of the International Monetary Fund (IMF) Christine Lagarde believes that the international community needs to consider the possibility of issuing digital currencies by central banks. She announced this at the Singapore Fintech Festival on Wednesday, writes Cointepegraph.
Lagarde said she was “not completely sure” about the broader concept of cryptocurrencies, but admitted that there might be a place in the economy for government digital currencies or similar instruments..
“I think we should consider issuing a digital currency. In the digital economy, there may be a place for a government that will issue money, ”she said..
The day before, the IMF published a report on the topic of digital currencies issued by central banks, which examined the advantages and disadvantages of a financial instrument..
According to Lagarde, several jurisdictions are already considering using the latest inventions from the field of fintech to meet their own needs. If the initiatives are implemented at a decent level, then such digital currencies “can become a solution to problems in the field of public policy”, in particular, “the dissemination of financial services”, “consumer safety and protection” and “privacy in payments”.
The head of the IMF also highlighted the shortcomings of such instruments, saying: “I would like to emphasize the risks of slowing down innovation – this is the last thing we should do. In my opinion, we need to be creative about these risks. “.
Earlier, the IMF recommended the Marshall Islands not to issue a national cryptocurrency, pointing out that a country in a difficult economic situation, in this case, risks losing access to dollar financial flows.