Cryptocurrencies are making an impact on the financial system

The new technologies are shaking the global banking industry.
Regulators and authorities should monitor it closely.

The new technologies are having a clear impact on the financial system and the global banking sector, International Monetary Fund Managing Director Christine Lagarde said on Wednesday in the interview with CNBC.

The head of the IMF believes that the concept of digital money has a profound effect on the banking system and the outcomes should be monitored to prevent destabilization and mitigate risks. She also pointed out, that innovations tend to change traditional business models.

“I think the role of the disruptors and anything that is using distributed ledger technology, whether you call it crypto, assets, currencies, or whatever ... that is clearly shaking the system,” she said as cited by CNBC.

At the same time, Ms. Laggard added that the innovations that lead to the system destabilization are unwanted, while the changes in the industry must be accompanied by an appropriate regulation that covers both financial companies and ho-tech startups that are entering the segment.

“They will have to be held accountable so that they can be fully trusted,” she explained.

Lagarde made her comments after a panel discussion at the IMF Spring Meetings in Washington devoted to the evolution of money and payment systems.

Earlier this year the IMF said that virtual currencies cannot be regarded as real money, while Christine Lagarde praised blockchain technology for being “safe, cheap, and potentially semi-anonymous”.

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