The head of the International Monetary Fund (IMF) believes that cryptocurrencies may give traditional government-issued ones a "run for their money."
Speaking at a conference in London, IMF chief Christine Lagarde told attendees that she thinks "it may not be wise to dismiss virtual currencies."
Notably, she outlined possible scenarios in which a country – particularly those with "weak institutions and unstable national currencies" might actually embrace one more directly.
"Instead of adopting the currency of another country – such as the U.S. dollar – some of these economies might see a growing use of virtual currencies. Call it dollarization 2.0," she said.
One of the driving factors behind that potential evolution would be a shift in consumer preference for new currencies that are "easier and safer" than existing ones. That scenario could be further hastened if cryptocurrencies "actually become more stable," she said.