With so many countries focusing on Bitcoin regulation these days, one wouldn’t necessarily expect to see things evolve in a positive direction. As of right now, most of Europe still remains on the fence about regulating this new form of money, although some progress has been made. Surprisingly, Christine Lagarde of the International Monetary Fund would much rather see an even-handed approach in this regard. That’s a positive sign for this nascent industry.
Christine Lagarde Remains Pro-Cryptocurrency
Over the past few months, it has become more than apparent that the IMF has nothing against Bitcoin and similar currencies. That remains a rather surprising attitude to this very day, as there is no reason for the IMF to let Bitcoin and other cryptocurrencies thrive. After all, this new form of money can make existing financial assets and service providers obsolete in the future.
Even so, Christine Lagarde remains rather positive when it comes to cryptocurrencies. She is convinced that this new form of money can make a rather positive impact in the years to come, assuming regulators let this industry grow and evolve on its own terms.
In her most recent blog post, Lagarde advocates for an “even-handed approach to cryptocurrencies”. While that may sound a bit confusing, it’s evident Lagarde wants to see this form of money succeed, as Bitcoin and its cohorts can peacefully coexist with traditional forms of money.
Additionally, most people realize that regulating cryptocurrency serves no real purpose. It isn’t even possible to do so, as there is no centralized authority to control. All regulators can do is make life unnecessarily difficult for companies offering crypto-related services, although it remains to be seen whether or not that will be the case in Europe and beyond.
Additionally, Lagarde highlights some of the key benefits associated with crypto assets. The fast and inexpensive nature of conducting financial transactions makes these currencies vastly superior to other currencies. Moreover, the underlying DLT technology can improve the overall efficiency of financial markets. It’s evident there’s a lot more to the various cryptocurrencies than most regulators give them credit for.
Taking an even-handed approach to cryptocurrencies will not be all that easy. Lagarde acknowledges that getting customers and authorities to support cryptocurrencies will remain a critical challenge. The IMF can play a big role in doing so, as its 189 members hold the key to enacting open-minded cryptocurrency regulation.