International Monetary Fund’s Christine Lagarde has implored central banks to consider issuing digital currencies.
The use of cryptocurrency will offer immediate, safe, cheap, and potentially semi-anonymous transactions, she said at the Singapore Fintech Festival after the release of an IMF paper titled “Winds of Change: The Case for New Digital Currency.”
Central banks would have a sure footing in payments, she said. In addition, they would offer a more level playing field for competition, and a platform for innovation.
“Meanwhile, your bank or fellow entrepreneurs would have ensured a friendly user experience based on the latest technologies,” added the IMF’s managing director and chairperson.
Swedish and Canadian central banks are already mulling the possibility of rolling out cryptocurrencies.
Kenyan central bank governor Patrick Njoroge has consistently frowned upon use of digital currencies in the market. Ms Lagarde held the same position, but seems to have had a change of heart.