The President of the International Monetary Fund believes that digital currencies may give traditional currency issued by the government 'opportunities to run money'. At a conference in London, IMF President Christine Lagarde told attendees that she thought it might not be wise to exclude digital currencies.
It also highlighted the most likely scenarios, which revolve around the possibility of adopting one of the digital currencies in a country - particularly countries with 'weak institutions and negative national currencies
. She added:
Instead of adopting the currency of another country such as the US dollar, some of these economies in countries may experience increasing use of digital currencies. '
The motive behind using digital currencies
One of the factors behind this potential development is the shift in consumer preference for new currencies that are 'easier and safer' than currencies in their country. She added that this scenario could happen much faster if the price of digital currencies stabilized. Where she continued Lagarde, saying:
'So digital currencies can give current currencies and monetary policy the possibility of operating funds, as the best response from central bankers is to continue to implement an effective monetary policy, opening up to new ideas and demands that keep pace with the development of economies at the moment.'
Lagarde said earlier in her speech that such a result was, in her view, a distant possibility, saying that digital currencies are 'very volatile, risky, and energy-intensive as well, and the techniques behind these currencies are still undevelopable.
To date, the International Monetary Fund has advocated a balanced approach to digital currency regulation, reflecting this position in the staff paper issued in January 2016. Lagarde also expressed its support for financial applications based on the technology of the plocin, It was explored by the IMF at the organizational level.
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