The Managing Director of the International Monetary Fund has speculated that Bitcoin and cryptocurrency have as much of a future as the Internet itself. It could displace central banks, conventional banking, and challenge the monopoly of national monies.
Lagarde says the only substantial problems with existing cryptocurrency are fixable over time.
For now, virtual currencies such as Bitcoin pose little or no challenge to the existing order of fiat currencies and central banks. Why? Because they are too volatile, too risky, too energy intensive.
Virtual currencies could actually become more stable.
The best response by central bankers is to continue running effective monetary policy, while being open to fresh ideas.
Governments and Central banks will now surrender easily, they will try as much as possible keeping this broken system of fiat money, but if the blockchain technology is not a revolution what would make Christine Lagarde (Head of IMF) say that cryptocurrency could displace central banks.