The head of the International Monetary Fund, detailed the global benefits of cryptocurrency recently, which has given Bitcoin an unexpected boost. Christine Lagarde wrote in a blog that Bitcoin could enable fast and inexpensive transactions, and that blockchain could make financial markets safer.
Despite a rocky start, Bitcoin crept back above $8,000, following this blog, where she said;
“Just as a few technologies that emerged from the dot-com era have transformed our lives, the crypto assets that survive could have a significant impact on how we save, invest and pay our bills.”
Last year she also commented that the Bank of England should have an even-handed approach to regulation. She said;
“Before crypto-assets can transform financial activity in a meaningful and lasting way, they must earn the confidence and support of consumers and authorities…An important initial step will be to reach a consensus within the global regulatory community on the role crypto-assets should play. Because crypto-assets know no boundaries, international cooperation will be essential.”
Despite her recent comments boosting Bitcoin, just last month, she also expressed her concerns regarding cryptocurrencies, and the perils that come along with it due to the decentralised and semi anonymous nature of the technology.
What is for sure though is that her latest comments have definitely come at the right time, especially as Bitcoin has significantly dropped in value this year so far. It is a notoriously hard market to predict, and price predictions are often just speculation.
Over the past few days, Bitcoin has sustained the gain, and the price has steadied at around $8,000. There is no doubt, that a positive media presence has helped this, including an Islamic scholar declaring the digital asset halal under Sharia Law.