SINGAPORE – While cash currently provides anonymous users, central bank control can be introduced to allow analogue digital currencies.
This is one of the ways in which central banks can provide consumers with better protection in this new money landscape, said Christine Lagarde, Managing Director of the International Monetary Fund.
The growing prevalence of digital currencies has caused privacy problems among others, but challenges can be overcome – she added.
Speaking at the Singapore Fintech Festival, which took place in Singapore on Wednesday (14 November), Ms Lagarde said that the Fintech revolution has changed the role of the state in regulating money.
"Revolutionary questions about fintech … coins and commercial deposits undermine the role of the state in providing money," she said.