IMF: DLT Transformation Needs Trust and System Stability

Christine Lagarde – managing director of International Monetary Fund (IMF) spoke to CNBC that the cryptocurrency are “clearly shaking the system”, following a panel on “Money and Payments in the Digital Age” hosted by World Bank Group and the IMF in Washington, D.C.

Lagarde used the example of JPM coin to highlight that distributed ledger technology (DLT) are disrupting the financial market. “I think the role of the disruptors and anything that uses DLT, whether you call it crypto assets, currencies or whatever – and it’s far from the Bitcoins we used to talk about a year ago – that is clearly shaking the system” she added.

While Lagarde believed that financial regulation should keep up with fintech innovation, she warned that “We have to be mindful of two things: trust and the stability of the system. We don’t want innovation that would shake the system so much that we would lose the stability that is needed”.