Powerful Ally

Head of IMF Urges Governments to Consider Issuing Digital Currencies

"The advantage is clear."

11. 14. 18 by Kristin Houser
Adobe Stock/Tag Hartman-Simkins
Image by Adobe Stock/Tag Hartman-Simkins

Think About It

The head of one of the world’s most influential financial organizations just threw her weight behind digital currencies.

Christine Lagarde is the head of the International Monetary Fund, an organization dedicated to ensuring the stability of the global economy. On Wednesday, she gave a speech at a financial tech conference in Singapore, where she suggested that governments take a good hard look at cryptocurrencies and other digital currencies.

“I believe we should consider the possibility to issue digital currency,” Lagarde said. “There may be a role for the state to supply money to the digital economy.”

More Pros Than Cons

During her speech, Lagarde argued that there are many potential benefits of a state-issued digital currency, which she believes could take the form of a “state-backed token, or perhaps an account held directly at the central bank.”


“The advantage is clear,” she told the audience. “Your payment would be immediate, safe, cheap, and potentially semi-anonymous… And central banks would retain a sure footing in payments.”

Lagarde also announced the release of a new paper exploring the pros and cons of a state-issued digital currency on the IMF website.

A Turning Point

Digital currencies are still largely the domain of private actors — to date, only a handful of governments have even dabbled in the space, and those efforts have produced mixed results.

The IMF is a global finance leader — of the 195 countries in the world, 189 are members — so its head suggesting that governments consider issuing digital currencies carries great weight.


Ultimately, Lagarde’s speech could prove to be a turning point in the adoption of digital currencies, moving the assets from the fringes of society into the financial mainstream.

READ MORE: IMF’s Lagarde Says Central Banks Could Issue Digital Money [BBC]

More on cryptocurrencies: Federal Reserve Confirms US Central Bank Is Thinking About Their Own Digital Currency

Care about supporting clean energy adoption? Find out how much money (and planet!) you could save by switching to solar power at UnderstandSolar.com. By signing up through this link, Futurism.com may receive a small commission.


Share This Article

Keep up.
Subscribe to our daily newsletter to keep in touch with the subjects shaping our future.
I understand and agree that registration on or use of this site constitutes agreement to its User Agreement and Privacy Policy


Copyright ©, Camden Media Inc All Rights Reserved. See our User Agreement, Privacy Policy and Data Use Policy. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Futurism. Fonts by Typekit and Monotype.