Cryptocurrencies are making an impact on the financial system -  Christine Lagarde

  • The new technologies are shaking the global banking industry.
  • Regulators and authorities should monitor it closely.

The new technologies are having a clear impact on the financial system and the global banking sector, International Monetary Fund Managing Director Christine Lagarde said on Wednesday in the interview with CNBC. 

The head of the IMF believes that the concept of digital money has a profound effect on the banking system and the outcomes should be monitored to prevent destabilization and mitigate risks. She also pointed out, that innovations tend to change traditional business models. 

“I think the role of the disruptors and anything that is using distributed ledger technology, whether you call it crypto, assets, currencies, or whatever ... that is clearly shaking the system,” she said as cited by CNBC. 

At the same time, Ms. Laggard added that the innovations that lead to the system destabilization are unwanted, while the changes in the industry must be accompanied by an appropriate regulation that covers both financial companies and ho-tech startups that are entering the segment. 

“They will have to be held accountable so that they can be fully trusted,” she explained. 

Lagarde made her comments after a panel discussion at the IMF Spring Meetings in Washington devoted to the evolution of money and payment systems. 

Earlier this year the IMF said that virtual currencies cannot be regarded as real money, while  Christine Lagarde praised blockchain technology for being  “safe, cheap, and potentially semi-anonymous”.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

BTC/USD must overcome resistance at $8,485 to re-enter $8,500 zone

BTC/USD daily chart has gone up from 8.282.30 to $8,535 as markets opened this Tuesday. The price is currently consolidating in a flag formation, currently prepping itself for a potential breakout. The daily price chart is currently ...

More Bitcoin News

Ripple price analysis: XRP/USD treading in the confines of a rising channel

Ripple bulls have remained defiantly bullish since Monday. Despite the spectacular correction testing and failing to break above $0.30 hurdle, the price has been astonishingly bullish to stay above $0.29. 

More Ripple News

Stellar market overview: XLM/USD shoots up by 4.40% as bulls make merry

XLM/USD has gone up from $.0615 to $0.0642 so far today, rising by 4.40%. Stellar had found support on the upward trending line after falling to $0.0532 back on September 24. After two straight bullish days ...

More Stellar news

Tim Draper: Bitcoin will change how Governments operate

Tim Draper, a popular venture capital investor, stated that he expects Bitcoin (BTC), among other technologies, to change how governments function worldwide. In a recent medium post, Draper calls Bitcoin “the startup currency” ...

More Cryptocurrencies News


Bitcoin Weekly Forecast: BTC bulls trapped below SMA200 daily

Bitcoin bulls have had a short glimpse of victory only to suffer a bitter disappointment this week.

Read the weekly forecast