The advance of bitcoin and other digital currencies could make the global financial system safer despite the prospect of “inevitable” accidents waiting to happen, the head of the International Monetary Fund has said. Christine Lagarde said some tools built using the technology behind bitcoin, which are known collectively as crypto-assets, hold the potential to revolutionise the world of high finance by making it faster, cheaper and safer. Lagarde has previously issued warnings over the risks posed by bitcoin and other digital currencies, calling for global regulators to stage a crackdown by using its technology to “fight fire with fire”. Bitcoin hit almost $20,000 (£13,958) in value in the run-up to Christmas, before crashing by more than half earlier this year. More than 1,600 digital currencies are in circulation, having ballooned in number in recent years.

Source: The Guardian April 16, 2018 17:15 UTC