IMF chief says world must be even-handed in dealing with digital currencies’ risks and innovations
Remarks by Christine Lagarde, the International Monetary Fund chief, come as financial regulators around the world grapple with how to handle digital money
“Policymakers should keep an open mind and work toward an even-handed regulatory framework that minimises risks while allowing the creative process to bear fruit,” IMF Managing Director Christine Lagarde wrote in her blog on Monday.
Her remarks, made ahead of the IMF’s annual spring meeting in Washington this week, come as the world’s financial regulators grapple with how best to handle digital money that has been designed to trade without the oversight of a central monetary authority.
There are as many as 1,500 different types of digital currencies in circulation around the world, valued at an estimated US$300 billion. That is about 4.8 per cent of the world’s foreign exchange reserves - and bigger than Singapore’s reserves, which are the 12th biggest in the world, being valued at around US$282 billion according to Trading Economics.