The current crypto friendly Managing Director of IMF, Christine Lagarde, has been nominated to be the President of the European Central Bank (ECB). To honor the nomination, Lagarde has temporarily agreed to relinquish her duties as IMF head.
I am honored to have been nominated for the @ECB Presidency. In light of this, and in consultation with the Ethics Committee of the IMF Executive Board, I have decided to temporarily relinquish my responsibilities as IMF Managing Director during the nomination period.
— Christine Lagarde (@Lagarde) July 2, 2019
The former lawyer was the first woman to chair global law firm Baker McKenzie, the first woman to serve as a finance minister from any Group of Seven nation and then the first to lead the International Monetary Fund (IMF).
This nomination has got the crypto-ecosystem riled up as she is one of the few leaders of establishment institutions who have a pro-crypto stance.
Christine Lagarde has been nominated as candidate to replace Mario Draghi as head of the ECB. She is a supporter of digital assets and could represent a transformational force within central banking. https://t.co/LttKecwKxs
— Alex Krüger (@krugermacro) July 2, 2019
Noticeably, as a display of her stance, Lagarde had called on central banks around the world to consider issuing digital currencies. She has an opinion that the state has a role to play in injecting money to the digital economy and it was, therefore, necessary to ‘consider the possibility to issue digital currency’.
Introducing the topic “Money and Payments in the Digital Age”, Lagarde said it was agreed that cash usage was decreasing in many countries, citing Sweden where now only 13 percent of transactions were still being done using cash. In the US, about 22 percent of transactions are done still using cash and about double that for China.
At the recently held G20 conference she said that tech giants like Amazon, Facebook, and Microsoft using Big Data and AI could eventually disrupt the financial system. The financial markets could be modernized through this innovation and it could make the financial system vulnerable. Technology giants could start dominating the new settlement systems.
We should not be too excited about her infatuation with cryptocurrencies. It is important to remember that she is in favor of cryptos created by central banks and not decentralized cryptos. Although, the crypto community has no leverage in the traditional financial establishment and a law passed for any crypto, decentralized or centralized, can be looked like a tiny step forward.
This Twitter thread by prominent economic Gregory Raymond perfectly sums her changing stance over the years.
🇪🇺Christine Lagarde devrait, sauf retournement de dernière minute, prendre la présidence de la BCE en octobre. Outre la vertigineuse question des taux, elle devra également se saisir du sujet crypto. Voici ce qu’elle a déclaré ces dernières années en tant que présidente du FMI ⬇️
— Grégory Raymond (@gregory_raymond) July 2, 2019