Christine Lagarde, managing director and chairwoman of the International Monetary Fund (IMF), has encouraged the exploration of a central bank digital currency (CBDC) in the light of decreasing demand for cash and rising preference for digital money.

In a prepared speech for the Singapore Fintech Festival on Wednesday, Lagarde said:

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

Various central banks around the world are “seriously” considering the issuance of digital currency, she said, including Canada, China, Sweden and Uruguay. “They are embracing change and new thinking—as indeed is the IMF.”

Lagarde noted that major cryptocurrencies like bitcoin, ethereum and XRP, are also “vying for a spot in the cashless world, constantly reinventing themselves in the hope of offering more stable value, and quicker, cheaper settlement.”

Continue Reading on CoinDesk

Like this: Like Loading...