The disruptive model potential that Digital currencies possess is puzzling many in the monetary sector as Christine Largade observes. It is this fact that the managing director of IMF said that IMF is still considering whether to create own currency.
As per recent events, Russia through its CryptoRubble has also decided to penetrate through the decentralized space of the digital currency. It proves that both organizations and states appreciate digital currencies value as long as they can issue and control it.
The IMF head, who is a favorite of the bitcoin, is asserting that her organization a lot globally to regulate the working of cryptocurrencies.
Lagarde, at a recent IMF annual meeting, said these form of currencies are about to shake and cause massive disruptions in the global payment systems and financial services. In her opinion, failure of Global financial institutions to watch and understand financial tech products that are emerging predisposes them to potential risks.
According to Lagarde, IMF has created something which it hopes that in the near future it will develop into a cryptocurrency it can possess.
She specifically stated that the Special Drawing Right (SDR) is an IMF currency built on the cryptocurrency technology for purposes of being the international reserve asset.
The IMF, Lagarde alludes, using the SDR currency, is considering to enter the crypto space to regulate the space’s cross-border landscape.