Christine Lagarde, head of the International Monetary Fund is promoting the use of cryptocurrencies as a financial instrument, but in an institutionalized and centralized manner in each country. Governments, then, should consider offering their own cryptocurrencies to prevent cryptocurrencies from becoming means to commit financial crimes.
How would this work ?
Under this scheme the central banks would take charge of the processing every digital transaction, they would maintain a secure payment base, in which prices and competition would be fairer. Meanwhile entrepreneurs and Fintech companies would be responsible for offering innovative services focused on the customer’s needs.
A system regulated by central banks could expand its financial services to countries in the developing world, and promote financial inclusion of the large unbanked sector that currently exists.
What does this represent for users?
One of the most attractive features of cryptocurrencies and Blockhain technology is that they are options outside the main banking system. Centralizing it could become an addition to the same system they are trying to change, and at the same time raise costs.
However, it’s likely that the centralization and participation of the IMF is an attractive factor for companies that wish to use blockchain to process transactions.
Why centralize cryptocurrencies?
According to Lagarde and the IMF’s research, only institutions of the size and capacity of central banks can develop systems that are sufficiently secure to satisfy the needs that users have within the econom, that is increasingly adapting to the digital world.
Money, how we perceive it and how we use it, is changing. Cryptocurrencies, their regulation and their possible integration to the central financial systems seem a logical progression to adapt to a world in which social networks and the internet have been integrated into daily life and have become a necessity.
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