Christine Lagarde may have changed her mind about virtual currencies and blockchain technology. The International Monetary Fund’s (IMF) chief has written a blog post about her position towards cryptocurrencies and blockchain technology. The article has been titled ‘An even-handed Approach to Crypto-Assets’ and has been uploaded on April the 16th.
Lagarde Proposes Soft Regulations to Cryptocurrencies
Among the most important things discussed in the post is the fact that she advises policymakers to have an open mind and work toward an ‘even-handed regulatory framework’. According to her, the intention is to minimize the risks and allow the creating process to develop. 
Christine Lagarde wrote:
“Just a few technologies that emerged form the dot-com era, have transformed our lives, the crypto-assets that survive could have a significant impact on how we save, invest and pay our bills. That is why policymakers should keep an open mind and work toward an even-handed regulatory framework that minimizes risks while allowing the creative process to bear fruit.”
The article explains that virtual currencies and crypto-assets have several benefits that must have a good and friendly regulatory framework that would allow them to expand. Mrs Lagarde states that cryptocurrencies are fast and inexpensive compared to other traditional financial tools.
At the same time, the text uploaded by Lagarde says that another advantage of crypto-assets is their underlying technology. It mentions that smart contracts could eliminate the need for some intermediaries, help storing important records, improve health care companies, and secure property rights, among other benefits.
“In my view, the fin-tech revolution will not eliminate the need for trusted intermediaries, such as brokers and bankers,” Lagarde says. “There is hope, however, that decentralized applications spurred by crypto-assets will lead to a diversification of the financial landscape, a better balance between centralized and de-centralized service providers, and a financial ecosystem that is more efficient and potentially more robust in resisting threats.”
Cryptocurrencies must be regulated, but they should have a proper framework that would allow them to develop and promote the technological upgrade that the society is searching for.
Images CNBC and Urdupoint
