Categories: Blockchain News

IMF Managing Director Explains How Cryptocurrency is ‘Changing the Business Model of Commercial Banks’

The adaption and progress of Blockchain and cryptocurrencies have gained considerable momentum now which increases the responsibility of Global Organizations like the International Monetary Fund (IMF) to…


The adaption and progress of Blockchain and cryptocurrencies have gained considerable momentum now which increases the responsibility of Global Organizations like the International Monetary Fund (IMF) to maintain the stability in world economics.


The potential of Blockchain and cryptocurrencies goes beyond the capabilities of Bitcoin. Currently, the Regulators and Central bank face not a single threat in the form of Bitcoin, but also the associated disruptive technology and the army of digital currencies that could change the current economic system of the world.

Incumbent Banks Face Blockchain Disrupters

The IMF Managing Director, Christine Lagarde recently affirmed that commercial banks have started to feel the heat and the need for innovation and transformation in the current Financial system. Not only Blockchain technology but cryptocurrencies are alone ‘disrupting’ the global finance sector.

Lagarde hinted that the ‘JPM coin,’ which was launched by Banking Giant JP Morgan and Co. in February 2019 is the proof that digital assets are seeping into the financial system. Moreover, she also expects that the limitations on the use of the JPM coin “to be scaled beyond institutional clients.”

Lagarde noted in an interview with the CNBC on Wednesday 10th April that,


“The voices that we heard which I thought were really interesting were those of the Regulators and central bank Governors.” She said that they accepted that “this is good and this is helpful and is changing the business model of commercial banks”

Facebook also hinted at its plan of releasing its cryptocurrency which would potentially enable transfer of value between billions of users worldwide. The digital assets and tokenized economy are “shaking the system” from its core.

The Central Bank of Kenya has granted a banking license to a Telecom Company. There are many Data and Information firms like Amazon and Google which can enter the space with their coin too. There are many other Crypto-Firms which are seeking regulatory approval from major Federal Institutions to promote the use of Blockchain and Cryptocurrencies.

Nevertheless, as a cautionary note and highlighting the responsibility of the IMF, she added that maintaining stability in the financial system is IMF’s prime focus and would not let unchecked innovation disrupt the system adversely.

“But we have to mindful of two things: trust and stability of the system.”

Go you think Apple and Google will release their cryptocurrencies too? What do you think about the tokenization of the economy? Please share your views with us.

To get the daily price analysis, Follow us on TradingView

Nivesh Rustgi

Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)

Recent Posts

ETH Supply in Smart Contracts Leads That on Exchanges With Huge Margin, Thanks to DeFi

On-chain data analytics provider Galssnode has come up with an interesting observation for ETH supply!…

1 day ago

DeFi Mania Continues to Catalyze DEX’s Volume

Decentralized exchanges [DEXs] has recorded phenomenal growth in 2020. And it is not the user…

2 days ago

CrossFi Solutions Can Overcome the DeFi Hype in Building a Sustainable Future for Decentralized Finance

Decentralized Finance (DeFi) is no-brainer the crypto ‘buzzword’ of 2020, this space has experienced tremendous…

2 days ago

Security Risks in DeFi (Decentralized Finance)

Decentralized finance has been the talk of the town for the last few months, seeing…

2 days ago

Bitcoin Trading Volume on Bakkt Peaks Again as September Expiration Approaches

Bakkt recently had witnessed a peak in the trading volume of physically-settled bitcoin futures on…

2 days ago

Bitcoin To 10x From These Levels Says Analyst, Predicts Other Giants to Follow MicroStrategy

Business Intelligence Firm MicroStrategy created a massive buzz by announcing BTC purchase worth $425 million.…

2 days ago