Future technological development may render cryptocurrencies more stable and safer than physical money, International Monetary Fund Managing Director Christine Lagarde has said. The lack of settlement risk, clearing delays, central registration and intermediaries means citizens may one day ask central banks to provide a digital version of legal tender for use in small-value transactions, Lagarde told a Bank of England conference. “Cryptocurrency is not going away,” she said, adding that the technology could be used by governments as an alternative form of payment or even as a way to pay taxes.
Future technological development may render cryptocurrencies more stable and safer than physical money, International Monetary Fund Managing Director Christine Lagarde has said. The lack of settlement risk, clearing delays, central registration and intermediaries means citizens may one day ask central banks to provide a digital version of legal tender for use in small-value transactions, Lagarde told a Bank of England conference. She encouraged central bankers to be open to new monetary policies as economies evolve, citing the potential for cryptocurrencies to be used as a transparent option for countries with developing currencies or unstable institutions.