IMF Chair Lagarde: Banks Don’t Need to Fear Bitcoin or Blockchain Technology

Christine Lagarde, the head of the International Monetary Fund and former French finance minister, said this week that banks have nothing to fear from Bitcoin or blockchain technology.

The Financial Times reported today that Lagarde told attendees at a conference in New York that the banking industry should "pause" when it comes to concerns about being changed or eliminated by blockchain.

“Many of you will have heard not only about Bitcoin, but also about blockchain, this incredible technology that is still keeping Bitcoin running to this day. The fact that it can provide trust and identity confirmation in an incredibly convenient way, even if someone tries to commit fraud in any way. And many people in this industry are worried about whether these technologies will cause great disruption to the current banking industry.”

“Please pause for a second,” she told the bankers in the meeting.

“If these new technologies, as long as these new technologies are intended to be abused, or take advantage of their anonymity, I think banking will have a good time, as long as you have the money and the culture to restore the trust you can see, there is no alternative to transactions, trade and business models.”

Lagarde’s comments referenced a Financial Times report on the link between the recent rise in Bitcoin and Asian Ponzi schemes.

Lagarde took over the IMF in 2011. Her predecessor was also the French Finance Minister, who resigned from the IMF after sexual assault allegations. Before becoming the Finance Minister, Lagarde also served as a French minister in several positions, including the Ministry of Agriculture.

Original: http://www.coindesk.com/imf-chief-banks-bitcoin-blockchain/
Translation: Prince Gong