The International Monetary Fund may soon develop its own cryptocurrency – potentially based on the Special Drawing Right.
As worldwide governments either take a harsher stance on cryptocurrencies or move to create their own, it seems inevitable that the International Monetary Fund may jump on the bandwagon in one direction at some point.
Christine Lagarde, the International Monetary Fund Managing Director, has announced that the Fund would not rule out developing its own cryptocurrency in the near future.
Lagarde has previously commented that she pictures the Fund as an essential factor in the worldwide regulation of cryptocurrencies, and has cited that the development of Blockchain-based digital currencies may lead to “massive disruptions”.
Lagarde specifically drew comparison between cryptocurrencies and the Fund’s Special Drawing Right – a form of currency it created in 1969 that serves as an international reserve asset.
Specifically, Lagarde quipped that she sees interest in seeing how the use of the Blockchain might help develop the Special Drawing Right – commenting that “What we will be looking into is how this currency, the special drawing right, can actually use the technology to be more efficient and less costly”.
The International Monetary Fund may soon step into a regulatory role considering the decentralized nature of cryptocurrencies which often disregard national borders – Lagarde specifically states that her hope is that “we can participate in that process because I see that as a very cross-border process”.
What are your thoughts? Would the IMF be able to successfully create a cryptocurrency – even one based on the Special Drawing Right? Be sure to let us know your opinion in the comments below!