IMF Head Foresees the End of Banking and the Triumph of Cryptocurrency
These sections of the speech resonate with me:<p>&quot;For now, virtual currencies such as Bitcoin pose little or no challenge to the existing order of fiat currencies and central banks. Why? Because they are too volatile, too risky, too energy intensive, and because the underlying technologies are not yet scalable. Many are too opaque for regulators; and some have been hacked.<p>But many of these are <i>technological</i> challenges that could be addressed over time. Not so long ago, some experts argued that personal computers would never be adopted, and that tablets would only be used as expensive coffee trays. So I think it may not be wise to dismiss virtual currencies.&quot;<p>&quot;IMF experience shows that there is a tipping point beyond which coordination around a new currency is exponential. In the Seychelles, for example, dollarization jumped from 20 percent in 2006 to 60 percent in 2008.&quot;<p>&quot;Why might citizens hold virtual currencies rather than physical dollars, euros, or sterling? Because it may one day be <i>easier</i> and <i>safer</i> than obtaining paper bills, especially in remote regions. And because virtual currencies could actually become more <i>stable</i>.&quot;<p>The person speaking: Christine Lagarde, Head of the International Monetary Fund.