Based on a recent report, the next president of the European Central Bank (ECB) Christine Lagarde who is known for her respect for the abilities of crypto has made some new crypto related comments.
Lagarde who is currently managing director at the International Monetary Fund (IMF) has shown her support for crypto exchanges like Circle and Ripple. She is going to be the first female ECB president and she has issued a warning to financial institutions asking them to act and adapt to new technologies in order to serve their clients in a much better way.
Lagarde will replace Mario Draghi as president of the ECB on November 1. She has been elected by representatives of 28 European countries.
“I think in the banking system at large in many, many countries, the difference will not be between those who are disrupted and those who survive. The difference will be between those who are cannibalised because they’re not seeing it coming, and they’re not embracing it and those who self-induce that cannibalisation.”
“And I’m using cannibalization on purpose because it’s a bit of a striking, horrible word. But it’s really what it means. You’re going to disrupt your business model. You’re going to change it. You’re going to reduce your costs. You’re going to expedite your transactions, and you’re going to inspire confidence because you will build out on the basis of an existing backbone, which is your bank and the confidence, relationship you’ve established with your customers.” She added.
She then said:
“So that’s where I see changes happening now. If you think of Circle, and Ripple and all those – that’s where they are active and helpful.”
Also, Lagarde stated that the digital assets which are “shaking the system” need to be regulated so as to maintain stability in the financial industry.