IMF Chief: Banks should be open to innovations like cryptocurrencies

The next president of the European Central Bank and the current IMF chief Christine Lagarde said that central banks and financial bodies should be receptive to innovations such as cryptocurrencies. She told the Economic and Monetary Affairs Committee of the European Parliament that these financial bodies should protect their consumers but be open to change as well. In a statement shared with Cointelegraph, Lagarde said:

”In the case of new technologies – including digital currencies – that means being alert to risks in terms of financial stability, privacy or criminal activities, and ensuring appropriate regulation is in place to steer technology towards the public good. But it also means recognising the wider social benefits from innovation and allowing them space to develop.”

Lagarde promised that if she were to become the ECB president, she will make sure that institutions adapt seamlessly to the changing financial environment. Back in April, Lagarde said that blockchain innovators are having a clear impact and “shaking the traditional financial world.”