IMF’s Lagarde Counters Crypto Warnings With New Praise Of ‘Potential Benefits’
IMF head Christine Lagarde has dedicated a new blog post to the “potential benefits” of “crypto-assets such as Bitcoin.”
The post, which comes roughly one month after Lagarde cautioned against the “dark side” of cryptocurrency, sees the IMF leader focus on what she describes as the “potential benefits” of “crypto-assets such as Bitcoin.”
“A judicious look at crypto-assets should lead us to neither crypto-condemnation nor crypto-euphoria,” she writes.
While continuing her narrative about the need to reign in illicit activity involving crypto, which she had voiced during January’s World Economic Forum 2018 and since, Lagarde nonetheless reiterates the need for an “even-handed approach” going forward:
“Understanding the risks that crypto-assets may pose to financial stability is vital if we are to distinguish between real threats and needless fears. That is why we need an even-handed regulatory agenda, one that protects against risks without discouraging innovation.”
She continued, “A clear-eyed approach can help us harness the gains and avoid the pitfalls of the new crypto-assets landscape.”
Lagarde’s call for a balanced outlook on cryptocurrency comes at a time of increasing regulatory involvement in the industry, while traditional financiers continue to call Bitcoin a ‘bubble’ and pundits spy the start of a market surge.