IMF’s Lagarde sees case for central bank digital currency

IMF chief Christine Lagarde said on Wednesday that there “may be a role for the state to supply money to the digital economy.” (AFP)
Updated 14 November 2018
0

IMF’s Lagarde sees case for central bank digital currency

  • ‘The key is to harness the benefits while managing the risks’
  • There ‘may be a role for the state to supply money to the digital economy’

SINGAPORE: With growing innovation in the financial sector and a move toward a cash-less society, there is a role for central banks to enter the world of digital currencies, IMF chief Christine Lagarde said Wednesday.
Unlike private currencies like bitcoin and ethereum, money created by central banks would be regulated and trustworthy, and could reach all sectors of society, Lagarde said in a speech prepared for the Singapore Fintech Festival.
“The key is to harness the benefits while managing the risks,” Lagarde said. “Proper regulation of these entities will remain a pillar of trust.”
However, while central banks in several countries are considering e-money, questions remain about whether it makes sense for every country.
There “may be a role for the state to supply money to the digital economy,” and she noted that Canada, China, Sweden and Uruguay were “seriously considering” issuing digital currency.
An official e-money would have the advantage of fulfilling policy goals including financial inclusion, security and consumer protection.
“My message is that while the case for digital currency is not universal, we should investigate it further, seriously, carefully and creatively,” she said.
The IMF issued a report on Wednesday examining the issues central banks would face if they decided to issue electronic money.


Twitter co-founder Evan Williams leaving board

Updated 24 min 22 sec ago
0

Twitter co-founder Evan Williams leaving board

  • ‘It’s been an incredible 13 years, and I’m proud of what Twitter has accomplished during my time with the company’
  • ‘I’m going to ride off into the sunset (or...down Market Street), so I can focus on some other things’

SAN FRANCISCO: Twitter co-founder and one-time chief executive Evan Williams is stepping down from the board, leaving the one-to-many messaging service to focus on “other projects.”
Williams will depart the Twitter board at the end of this month, according to a filing with the US Securities and Exchange Commission on Friday.
“It’s been an incredible 13 years, and I’m proud of what Twitter has accomplished during my time with the company,” Williams said in the filing.
“I will continue rooting for the team as I focus my time on other projects.”
Williams throttled back his role in the San Francisco-based startup eight years ago, turning his attention to new endeavors including creating popular online publishing platform Medium.
Williams ceded his role as Twitter chief executive to Dick Costolo in 2010. Co-founder Jack Dorsey returned as Twitter chief in 2015, having held the position when the startup was nascent.
Dorsey said in a Tweet that Williams was the reason he joined startup Odeo, an endeavor that led to him, Williams and Biz Stone creating Twitter.
“I appreciate you, Ev!” Dorsey tweeted on Friday.
“We’re going to miss your voice in our board conversations.”
Twitter has become a high-profile, and sometimes controversial, global stage for communication since it was launched in March of 2006.
“Thank you, @jack and @biz for starting this crazy company with me-and continuing to make it better and better,” Williams tweeted.
“I’m going to ride off into the sunset (or...down Market Street), so I can focus on some other things.”