IMF Managing Director Christine Lagarde believes in distributed ledger technology. Photo: Shutterstock
The International Monetary Fund believes distributed ledger technology can have a profound impact on the global economy.
While at the World Economic Forum in Davos, IMF Managing Director Christine Lagarde presented a report on the impact of distributed financial technology—Virtual Currencies and Beyond: Initial Considerations.
The IMF found distributed ledger technologies to be extremely beneficial in the context of an evolving financial landscape:
[Virtual currency] schemes and distributed ledger technologies can strengthen financial efficiency by facilitating peer-to-peer exchange while reducing transaction times and costs, especially across borders. In the longer term, these technologies have the potential to deepen financial inclusion by offering secure and lower-cost payments options. Beyond payments systems, distributed ledger technologies have implications for a wide range of markets and financial market infrastructures as a fast, accurate and secure record keeping system, including for stock exchanges, central securities depositories, securities settlement systems or trade repositories. Technological and regulatory progress will be needed to realize these potential benefits.