IMF Chief: Cryptocurrencies Should Be Considered

IMF chief Christine Lagarde warned that central banks and financial service providers should take a closer look at cryptocurrencies.

Speaking to CNBC at the IMF annual meetings in Washington:

“I think we are about to see massive destruction.” said

According to Lagarde, cryptocurrencies can play an important role in developing the IMF’s special drawing right (SDR) reserve currency.

“ Our review of the special drawing right can tell us how technology can be more useful and less costly.”

IMF has been exploring the technology’s potentials for some time. Cross-border payments and central bank-backed cryptocurrencies were on the agenda.

The managing director of the fund, Lagarde, is also one of the proponents of this technology.

Speaking at the London conference last month, Lagarde said that cryptocurrencies are the head of traditional currencies. He said he could hold it. In June, Lagarde stated that distributed ledger technology (DLT) could be used against fraudsters and terrorist funds. He explained that the coins are in the wrong category and said:

“Cryptocurrencies have more than meets the eye”

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