Christine Lagarde: ignoring virtual currencies is stupid

Christine Lagarde - The Head of the International Monetary Fund

Managing director of the International Monetary Fund, Christine Lagarde, decided to warn the central banks about the increase in the distribution of Bitcoin. She recommended not leaving digital currencies without attention, as their popularity is constantly growing. Lagarde addressed this issue at a conference that took place last Friday in London. In particular, she said that digital currencies can make "good competition" traditional. Digital currencies are still young.

However, according to Lagarde, in the near future digital currencies will not be able to supersede traditional ones. She thinks Bitcoin is too volatile. It is for this reason that many institutional investors have taken the position of expectation. Although sooner or later they decide to enter the game.
"According to Lagarde, digital currencies are not yet able to supersede traditional ones because they are" too volatile, risky, energy-intensive, and the underlying technologies are not yet scalable, "ABC News writes.
In addition, Lagarde mentioned that sensational cases of hacking exchanges, like the bankruptcy of MtGox, forced most investors to be wary of this industry.
Nevertheless, Lagarde is confident that many technical innovations inevitably await us. Digital currencies will continue to develop and flourish. She says that the crypto-currencies will gradually spread and win people's consciousness, like the Internet. In other words, specialists of central banks should not ignore and underestimate this innovative technology:
Not so long ago, some experts believed that computers would never be accepted, and tablets would be used only as expensive trays for coffee, so I think it's not very smart to overlook virtual currencies. "
Lagarde is confident that computers can be used to help the government and other organizations. In the future, they will be able to set policies, carry out management tasks, determine economic bubbles and manage other aspects of the financial system.
General awareness and other perspectives

As for the main perspectives, Lagarde points to a growing number of people realizing the real possibilities of Bitcoin and blockade. Nevertheless, there are still those who believe that Bitcoin is failing. Therefore, Jamie Dimon and Jordan Belfort call Bitcoin a fraud.
Nevertheless, such comments and actions do not cause Bitcoin harm. In response to each negative publication, there are many positive comments and actions. For example, Japan recently licensed 11 exchanges, turning into the world's main crypto-currency haven. Despite all the negative aspects, the liking for Bitcoins and crypto-currencies in general continues to grow rapidly.