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IMF’s Christine Lagarde urges banks to quickly create their own cryptocurrencies

Lagarde urges banks to quickly create their own cryptocurrencies – The head of the IMF, Christine Lagarde has recently voiced out that central banks around the world should consider creating their own Digital currencies. Christine, who once slammed Bitcoin and other cryptocurrencies during the Davos conference earlier this year seems to be having a change of view on cryptocurrencies even though she has always praised its benefits and technology.

Speaking in Singapore, Ms. Lagarde said with central banks creating their own cryptocurrencies, transactions and transfers will be safer, and this could help stand against cryptocurrencies such as Bitcoin. She voiced out that non-cash payments have been on the rise lately and is now proving to be a challenge to governments and central banks.

“I believe we should consider the possibility to issue digital currency… There may be a role for the state to supply money to the digital economy” Christine said during her speech.

She also pointed out that central banks in China, Sweden, and Canada are already looking into creating their own cryptocurrencies. She went further to explain some of the benefits of digital currencies posses such as fast payments, safe, cheap and semi-anonymous.

“The advantage is clear. Your payment would be immediate, safe, cheap and potentially semi-anonymous… and central banks would retain a sure footing in payment”

As reported by the Guardian post,  she urged central banks in her speech to be quick with creating their own cryptocurrencies to prevent the system from being taken over by fraudsters and money launderers.

These moves do not come as a great surprise as many already expected Central banks to create their own cryptocurrencies. Some other central banks who are very active in this sector include; the Iranian central bank, the Central bank in Uruguay, and the British central bank has also been experimenting with the blockchain technology.

As Lagarde urges banks to quickly create their own cryptocurrencies, how do you see a bank backed cryptocurrency coexisting with established cryptocurrencies like Bitcoin?

Let’s know your thoughts in the comment section below.

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