The nominee to be the next president of the European Central Bank (ECB), Christine Lagarde, has said central banks and financial bodies should protect consumers but be open to innovations such as cryptocurrencies. Lagarde, who is currently head of the International Monetary Fund, told the Economic and Monetary Affairs Committee of the European Parliament that central banks and financial regulators should embrace the opportunities presented by change. In her opening statement, shared with Cointelegraph via an IMF news release, Lagarde said: ”In the case of new technologies – including digital currencies – that means being alert to risks in terms of financial stability, privacy or criminal activities, and ensuring appropriate regulation is in place to steer technology towards the public good. But it also means recognising the wider social benefits from innovation and allowing them space to develop.” Lagarde promised that, if she were to become ECB president, she would focus on making sure that institutions promptly adapt to the rapidly changing financial environment. As Cointelegraph reported, Lagarde claimed in February that regulation of cryptocurrencies is “inevitable” and necessary on an international level. In April, she said that blockchain innovators are “shaking the traditional financial world” and having a clear impact on incumbent players.
The digital currency sector needs proper regulation but also room to grow , according to Christine Lagarde , chair of the International Monetary Fund ( IMF ) . Financial institutions and regulators should recognize the changes being brought about by the disruptive technology and be proactive in making sure they conform to standards of economic stability , privacy and preventing criminal activity , Lagarde said when speaking to the economics committee of the European Parliament . The French lawyer is set to become the next President of the European Central Bank in November , where she has promised to ensure institutions are ready for the shifting financial climate .