IMF Head: Cryptocurrencies Shake the Banking System
Financial technologies, including digital currencies, “shake” the banking system and require supervision to maintain stability, said the head of the International Monetary Fund.
In a conversation with CNBC, Christine Lagarde drew attention to the changing business models of commercial banks as evidence of the impact of innovations like cryptocurrencies on participants in the financial sector..
“I believe that disrupters and anything that uses distributed ledger technology, call them crypto, assets, currencies, whatever you want, is clearly shaking the system,” she said, adding that such changes in the financial industry cannot take place without the knowledge of regulators. … “We do not need innovations that will pump the system so hard that we will lose the necessary stability.”.
Lagarde noted that tech companies that take over payment functions, whether it’s Facebook with its supposedly upcoming cryptocurrency, or Apple, which recently unveiled its own card, are required to follow all the requirements in such cases. “It is necessary to ensure their accountability so that they can be fully trusted,” she explained..
Lagarde gave her comment after the end of a panel discussion at the IMF’s spring meeting in Washington, where the role of money and payments in the modern world was discussed.
Last November, Lagarde urged national governments to consider issuing their own cryptocurrencies..
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