IMF Chief In The Race For Top Position At European Central Bank

By Rishma Banerjee

Christine Lagarde, the IMF chief who had publicly claimed that she wants to ‘tame’ the cryptocurrency space, is being considered by many to be a potential candidate for a top position at the European Central Bank. Analysts also believe that if chosen, Lagarde, who would be the first ECB president to not be an economist, would be beneficial to the industry in the long run.

Lagarde has recently described the global economy as approaching a “rough patch.” Believing it will require “whatever it takes” to save the euro, she may be more open to trying out alternative technologies to boost economic growth one of which may be digital currencies, which Lagarde already believes are here to stay.

Therefore, it would be hard to argue that an ECB led by Lagarde wouldn’t be friendly towards cryptocurrencies. Moreover, she has called an international regulatory framework for the industry as “inevitable.” Therefore, we could see formal actions taken to regulate and legitimise the cryptocurrency space if she were to become ECB president.

All of this comes at a time when major financial firms are beginning to pour significant capital into the industry. With Facebook’s cryptocurrency set for release in 2020, many central banks have already spoken of a necessary international regulatory framework. Recently, it was reported that France would be leading the effort to create a ‘G7 cryptocurrency task force’ to address this problem directly.

Although Lagarde is no cryptocurrency evangelist, her ECB presidency would create the right conditions for the space to thrive. For that reason alone, the cryptocurrency industry should be optimistic if she ends up becoming president.