'Massive Disruption': IMF's Lagarde Says Cryptocurrencies Must Be Taken Seriously

Christine Lagarde, managing director of the international monetary fund (IMF), has warned that central banks and financial services need to pay closer attention to cryptocurrencies.

Speaking to CNBC at the IMF’s Annual Meetings in Washington D.C., Lagarde said:

“I think that we are about to see massive disruptions.”

According to Lagarde, cryptocurrencies could play a future role in updating the IMF’s own internal currency, a reserve asset named the Special Drawing Right (SDR).

She said: “What we will be looking into is how this currency, the Special Drawing Right, can actually use the technology to be more efficient and less costly.”

The IMF has been exploring the potential of the technology for some time, taking a focus on both cross-border payments and the possibility of a central bank-backed cryptocurrency.

Further, as the fund’s managing director, Lagarde has been a notable advocate of the technology.

Speaking at London conference last month, she said that cryptocurrencies may give traditional currencies a “run for their money,” while back in June, Lagarde argued that distributed ledger tech (DLT) could be used as a means to combat financial fraud and funding of terrorism.

In her conversation with CNBC today, Lagarde spoke out against JPMorgan Chase head Jamie Dimon’s heavy dismissal of bitcoin as a “fraud” last month, and warned against miscategorizing the cryptocurrency sphere as speculative or fraudulent.

Lagarde advised: “It’s a lot more than that as well.”

Christine Lagarde image via Shutterstock

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at news@coindesk.com.

Comments

comments

Filed in: Bitcoin Buzz Tags: ,

You might like:

R3's Hearn and Brown Say Enterprise Blockchain's Day of Reckoning Is Here R3's Hearn and Brown Say Enterprise Blockchain's Day of Reckoning Is Here
Commodity Traders, Major Banks Back New Blockchain Platform Commodity Traders, Major Banks Back New Blockchain Platform
3D Printed Gun Advocate Cody Wilson Charged With Child Sexual Assault 3D Printed Gun Advocate Cody Wilson Charged With Child Sexual Assault
Europol Warns of Crypto Hacks and Mining Malware in Latest Report Europol Warns of Crypto Hacks and Mining Malware in Latest Report
Bitcoin Core Developers Move to Fix Denial-of-Service Software Bug Bitcoin Core Developers Move to Fix Denial-of-Service Software Bug
Bitcoin's Price Swings to Nearly $6,500 in Volatile Trading Hour Bitcoin's Price Swings to Nearly $6,500 in Volatile Trading Hour
Coinbase Hires Fannie Mae Executive as Chief Legal Officer Coinbase Hires Fannie Mae Executive as Chief Legal Officer
Binance Reveals Plan to Launch Crypto Exchanges on Almost Every Continent Binance Reveals Plan to Launch Crypto Exchanges on Almost Every Continent
© 2018 Virtual Mining Bitcoin News. All rights reserved. XHTML / CSS Valid.