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BCN-09
IMF-FOREX-BANKING-DIGITAL-CURRENCY
IMF’s Lagarde sees case for central bank digital currency
SINGAPORE, Nov 14, 2018 (BSS/AFP) – With growing innovation in the
financial sector and a move towards a cash-less society, there is a role for
central banks to enter the world of digital currencies, IMF chief Christine
Lagarde said Wednesday.
Unlike private currencies like bitcoin and ethereum, money created by
central banks would be regulated and trustworthy, and could reach all sectors
of society, Lagarde said in a speech prepared for the Singapore Fintech
Festival.
“The key is to harness the benefits while managing the risks,” Lagarde
said. “Proper regulation of these entities will remain a pillar of trust.”
However, while central banks in several countries are considering e-money,
questions remain about whether it makes sense for every country.
There “may be a role for the state to supply money to the digital
economy,” and she noted that Canada, China, Sweden and Uruguay were
“seriously considering” issuing digital currency.
An official e-money would have the advantage of fulfilling policy goals
including financial inclusion, security and consumer protection.
“My message is that while the case for digital currency is not universal,
we should investigate it further, seriously, carefully and creatively,” she
said.
The IMF issued a report on Wednesday examining the issues central banks
would face if they decided to issue electronic money.
BSS/AFP/HR/0945