IMF Director Tells Banks: Do Not Worry about Bitcoin & Blockchain

Christine Lagarde, the managing director of the International Monetary Fund (IMF) addressed bankers to say that banks and financial institutions do not have to worryIMF
about bitcoin or the blockchain.

It’s that time for global financial figures to be dismissive of Bitcoin and its underlying technology, the block chain.

IMF Chief Christine Lagarde quelled bankers’ fears of the blockchain posing a threat to the current banking industry in banking conference at New York

As reported by The Financial Times, Lagarde said:

Many of you have heard about not only bitcoins but blockchains and that unbelievable technology that underlies the Bitcoins of this world at the moment, and how incredibly convenient it will be to actually generate trust and identify players and whatever pseudo they decide to use.

She continued, adding:

And many of you in the industry are actually worried that those technologies are going to massively disrupt the current industry.

Lagarde’s comments referenced an FT article about a potential pyramid scheme stacking up in a Chinese social network that is now using Bitcoin. She cited the potential for abuse in such technologies, the way she sees it.

“Pause for a second,” Lagarde said, calming the audience of bankers, before continuing:

If those new technologies and as long as those new technologies are going to abuse, take advantage of, the yield for anonymity, I think the banking industry has quite a few good days ahead of it as long as it takes ownership of those issues of capital and culture in order to actually restore the trust without which you see no trade no transaction no business can take place.

Born in Paris, Lagarde is a lawyer and formerly was France’s Trade Minister between 2005 and 2007. She is approaching the end of her five-year term as the head of the IMF and recently spoke about being prepared to serve another term.

Lagarde joins JP Morgan CEO Jamie Dimon to pour scorn over the longevity of Bitcoin in recent days and question the likelihood for it to threaten the current banking system.

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