State's role in regulating money has changed with digital currencies: IMF chief Christine Lagarde

The increasing prevalence of digital currencies has sparked privacy concerns, among other issues, but the challenges can be overcome, said Ms Christine Lagarde.
The increasing prevalence of digital currencies has sparked privacy concerns, among other issues, but the challenges can be overcome, said Ms Christine Lagarde.PHOTO: EPA-EFE

SINGAPORE - While cash currently affords its users anonymity, central bank controls can be set in place to allow digital currencies to do the same.

This is one way that central banks can provide better assurance for consumers in this new monetary landscape, said Ms Christine Lagarde, managing director of the International Monetary Fund.

The increasing prevalence of digital currencies has sparked privacy concerns, among other issues, but the challenges can be overcome, she added.

Speaking at the Singapore Fintech Festival held at Singapore Expo on Wednesday (Nov 14), Ms Lagarde said the fintech revolution has changed the state's role in regulating money.

"The fintech revolution questions... coins and commercial deposits, and it questions the role of the state in providing money," she said.