The world of cryptocurrencies will
remember Christine Lagarde as the IMF head that first acknowledged the
potential of digital currencies. The
lawyer, and former French finance minister, has in the past said that crypto
“seeks to anchor trust in technology.”
However, just like any other banker,
Largarde has expressed some reservations over the disruptive nature of digital
currencies. She is a believer in regulation, saying,
“Proper regulation of these entities will remain a pillar of trust.”
Nevertheless, during her tenure at the International Monetary Fund’s M.D, she
has said that blockchain based currencies are indeed “shaking the
Lagarde Moving To ECB
The IMF head is now headed to
Frankfurt for her new appointment as the European Central Bank (ECB) head.
Ripple fans believe this is another bullish occurrence for XRP. Christine,
while acknowledging the power of crypto, has been a tad offhanded about most
tokens, perhaps due to her regulatory stance.
She, however, has openly praised Ripple and Circle. Earlier in the year, in the Paris Fintech Forum, she warned banks to adapt to new technology or die. The IMF head warned the legacy banking system that they were in danger of not just disruptive change but self-induced cannibalization. She presented Ripple and Circle as a helpful way out for banks planning to catch up with the technology change.
Her predecessor at the ECB, Mario Draghi is a crypto bear. He has described digital currencies as “highly risky.” Saying that they should not be characterized as currencies, Draghi has done what he can to alienate central banks and the ECB from crypto experimentation. Largarde’s stance on these assets is, therefore, a fresh of breath air in a market where the winds of change are blowing.
At the 2018 Singapore Fintech
Festival, she mentioned that the IMF and some central banks are warming up to
the idea of digital currencies. The IMF has additionally released a paper on the issue. She caps the matter by saying, “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”.
The Ripple managerial team has held
many high-level discussions with Lagarde. It is highly probable then that the
new ECB head will bring her positive attitude towards Ripple and XRP to the
ECB. If she does, the blockchain startup will be set up for global blockchain
Ripple and XRP have even more friends in high places. The blockchain startup has a good rapport with Bretton Woods institutions. The World Bank, for instance, has praised Ripple’s xRapid platform.
As an illustration, Marco Nicoli, the institution’s senior financial sector specialist, has called it a “potentially transformational technology.” Nicoli has lauded the prowess of distributed ledger technologies in bringing change, efficiency, and affordable costs in transfers.
Ripple has also caught the eye of the White House. With China hogging half of the world’s Bitcoin mining setups, the Trump administration has sought an American competitor to back. Besides, it has given the States some crypto clout with Bill Clinton, for instance, becoming a keynote speaker in last year’s SWELL Conference. The real-time gross settlement platform has also collaborated with SBI Holdings, the Japanese financial services giant.
Forming SBI Ripple Asia, the partnership has culminated in a consumer-focused payment app powered by Ripple. MoneyTap brings to the market blockchain powered near instant, affordable, and efficient remittance services.