IMF confirms crypto is disrupting banking
The head of the IMF understands the reality behind cryptocurrencies
Whether they like it or not, banking institutions are going to have to acknowledge the truth. Cryptocurrencies are here to stay and they’re already having an impact on the financial sector. This was confirmed recently by the head of the International Monetary Fund (IMF), Christine Lagarde, who says that crypto is “shaking the [financial] system.”
Lagarde told CNBC this past Wednesday that commercial banks are already feeling the effects of crypto and are being forced to change their business models. She added, “I think the role of the disruptors and anything that is using distributed ledger technology, whether you call it crypto, assets, currencies, or whatever … that is clearly shaking the system.”
In order to ensure a positive and smooth transition, which is going to be inevitable, Lagarde reiterated what she has been saying for the past year – governments must create crypto regulations. If not, there is a greater risk to consumers and she asserts, “We don’t want innovation that would shake the system so much that we would lose the stability that is needed.”
Bank of America announced a year ago that it was being forced to change its business model because of crypto. It used that assertion as an attempt to quell crypto growth, but the truth is simple – companies must innovate to stay alive and must change with the times. Business models are always being threatened by new innovations and that is exactly why innovation exists. If Bank of America, and other banks, aren’t willing to embrace the changes, they deserve to fail.