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Mario Draghi’s ECB Successor Could Usher in Crypto-Friendly Europe

Last Updated March 4, 2021 2:37 PM
P. H. Madore
Last Updated March 4, 2021 2:37 PM

IMF Managing Director Christine Lagarde has reportedly been nominated to head up the European Central Bank, and this could be great for cryptocurrency.

The banker has previously spoken positively about blockchain and cryptocurrency, saying that it’s time for the world to get serious about the technology .

Pro-Digital Currency ECB President: Blockchainization of Europe Incoming?

Increasingly, people with a positive take on crypto are taking power in various institutions, including attempting to take over at the federal level of the United States.

The more power the pro-crypto lobby has, the better off Bitcoin and cryptocurrency businesses in the U.S. will be. The same is true in Europe.

Lagarde has also pushed for central banks to consider the notion of issuing digital assets.

A future in which central banks use blockchains to issue currencies is one that negates the need for stablecoins, including, potentially, Facebook’s Libra.

Essentially, forex markets could be created natively with blockchain technology – if the governments of the world started issuing digital assets.

Barring all of that, Lagarde might be reliable for fighting off onerous regulations. She has previously called for open-minded regulations although she maintains that regulations are inevitable.

Common Sense Crypto Regulations Could Create New Industry

Christine LaGarde, crypto regulations
While at the International Monetary Fund, Christine Lagarde advised Europe to take a “judicious look at crypto-assets.” | Source: Shutterstock

Lagarde once said:

“Here, I want to examine the promise they offer. A judicious look at crypto-assets should lead us to neither crypto-condemnation nor crypto-euphoria.”

Working now for years at the IMF, a move to the ECB means she could potentially have a lot more power.

If she promotes an agenda that is friendly to cryptocurrency, can we expect a renaissance of cryptocurrency companies in Europe?

All of it might have virtually no impact on British companies, of course, who are likely not going to be part of the European Union at all.

For the most part, Western governments are somewhat behind other countries in crypto regulation.

France might be considered an exception, having developed a full blockchain company framework. But by and large, countries like Malta and Estonia are friendlier to crypto companies.