European Central Bank (ECB) presidential candidate Christine Lagarde called for a balanced approach to regulating digital currencies.
In a statement to the Economic and Monetary Affairs Committee of the European Parliament, Lagarde emphasized that central banks should ensure stability and security in the financial sector. However, at the same time, regulators should be “open to new opportunities”, and, according to Lagarde, it is cryptocurrencies that can become the flagship of innovation.
“If we are talking about new technologies, including digital currencies, then they can pose risks to financial stability, confidentiality or be dangerous from the side of criminal activity. Therefore, we must ensure proper regulation and direct such technologies to the benefit of society. At the same time, we must recognize the wider social benefits of innovations and give them space for development, ”said the ECB presidential candidate.
In April, Lagarde expressed the opinion that blockchain companies are shaking the traditional financial system and have an impact on its participants. At the same time, the former chairman of the International Monetary Fund (IMF) urged the Central Bank (CBDC) to explore the concept of digital currency in light of the declining demand for cash and the growing preference for digital money.