Christine Lagarde urges central banks across the globe to consider issuing digital currencies. Christine Lagarde is the head of the International Monetary Fund. She said the issuance of digital currency by the central banks could help make the transactions of digital currencies safer. Ms. Lagarde disclosed this when delivering a keynote in Singapore. Over the years, cashless payments have increased significantly. This has also resulted in more challenges for central banks and governments.
Central Banks Should Consider the Possibilities of Issuing Cryptocurrency
Regulators have also shown a great level of concern regarding digital currencies. As a result, they are crying out for greater oversight. While delivering a speech at the event in Singapore, Christine Lagarde said that she believes its time for central banks to consider the possibilities of issuing digital currency.
She also added that the state might have a role to play in supplying money to the digital economy. Ms. Lagarde said there are lots of benefits to it. Some of the benefits she pointed out include safe, semi-anonymous, cheap, and fast payments. This would also enable central banks to maintain a sure footing in payments, she said.
Central Banks Already Considering Digital Currency
According to Lagarde, proposals of digital currency is seriously being considered by central banks in China, Canada, Uruguay, and Sweden. A central bank issued digital currency would be a liability of the state, and not of private companies. Consumers will greatly benefit from this as they would be able to carry out faster, safer, and cheaper transactions.
She also said that private companies may end up investing less in security. This would save the firm more cost. Adding that the more people the firm serves, the most useful and cheaper the services would be. However, she called for a careful, creative, and serious investigation in the case of digital currencies.
The underlying technology of digital currencies – blockchain – has been greatly praised for reducing the cost of transactions and increasing transaction speed. Nevertheless, the anonymity behind the trading of digital currency has resulted in great concern among regulatory agencies.
The anonymity of digital currencies, such as Monero [XMR], makes it easy for terrorist and criminals to move funds easily. The use of digital currencies such as Bitcoin (BTC) also enhances anonymous transactions and illicit movement of funds.
According to Mark Carney, digital currencies such as Bitcoin (BTC) needs to be regulated. Mark Carney is the Governor of Bank of England. He said digital currencies need to be regulated in order to crack down illicit activities and guide the financial system.
However, with the call of Christine Lagarde urging central banks all over the world to consider issuing digital currencies, the security of digital currency would greatly improve. This would make the crypto industry much stronger. It will also increase the usability of digital currencies as well as their values.
Bitcoin (BTC) Price Today – BTC / USD
At the time of writing, Bitcoin (BTC) is changing hands at $5,580 after losing about two percent of its value over the past twenty-four hours. Bitcoin (BTC) currently boasts of a market cap of $96.98 billion with a trading volume of $6.63 billion over the past twenty-four hours.