Distributed Ledger Technologies Are Shaking the System – Lagarde

Distributed Ledger Technologies

Distributed Ledger Technologies Are Shaking the System – Lagarde

Distributed Ledger Technologies

Managing director of International Monetary Fund (IMF), Christine Lagarde has said that blockchain innovators are shaking the traditional financial world.

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Lagarde made her comments in an interview with CNBC on April 10th, following a panel devoted to “Money and Payments in the Digital Age,” as part of the 2019 Spring Meetings of the World Bank Group and the IMF in Washington, D.C.

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Contributors to the panel, which Lagarde moderated, were co-founder and CEO of crypto finance firm Circle Jeremy Allaire, Sarah Youngwood, chief financial officer of Consumer & Community Banking at JPMorgan Chase, the European Central Bank’s (SCB) Benoît Cœuré, and governor of the Central Bank of Kenya (CBK) Patrick Njoroge.

Lagarde observed that financial disruptors are having a clear impact on incumbents and reshaping the system from the inside. She said:

“I think the role of the disruptors and anything that uses distributed ledger technology, whether you call it crypto assets, currencies or whatever — and it’s far from the Bitcoins we used to talk about a year ago — that is clearly shaking the system.”

She further noted that the transformative potential of blockchain-based technologies and assets have been hugely embraced by regulators and central banks.

Lagarde further stated:

“We have to be mindful of two things: trust, and the stability of the system […] we don’t want innovation that would shake the system so much that we would lose the stability that is needed.”

Lagarde has previously characterized crypto as being somewhere in between a fad and a revolution, and said that crypto markets must be regulated by the same laws that apply to the traditional sector in order to protect consumers and safeguard systemic stability.

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