The End of Banking as We Know It!

Last month, we shared a letter by Christine Lagarde, head of the International Monetary Fund (IMF), where she acknowledged that cryptocurrency could potentially eliminate the need for central banks and government-issued currency.

It’s a remarkable statement coming from someone in her position, and it’s something we couldn’t agree more with.

The blockchain itself is going to be implemented throughout the world, much like the personal computer in the 1980s/1990s and the Internet in the mid-1990s.

What seems like a small movement now will see a tipping point over the next 3 years.

The Department of Defense, Homeland Security, and some of the largest corporations on the planet are already beginning to use and upgrade their communications systems to blockchain technology.

Here are some key statements from Christine Lagarde:

“Why might citizens hold virtual currencies rather than physical dollars, euros, or sterling? Because it may one day be easier and safer than obtaining paper bills, especially in remote regions. And because virtual currencies could actually become more stable.”

“Consider the growing demand for new payment services in countries where the shared, decentralized service economy is taking off. This is an economy rooted in peer-to-peer transactions, in frequent, small-value payments, often across borders.”

She went on to note the high cost of banking and credit card fees for small transactions that cross borders, saying that these high fees would make cryptocurrencies more preferable.

“Citizens may one day prefer virtual currencies, since they potentially offer the same cost and convenience as cash – no settlement risk, no clearing delays, no central registration, no intermediary to check accounts and identities.”

And lastly, she summed up the future perfectly in this statement:

“Virtual currencies are in a different category, because they provide their own unit of account and payment systems. These systems allow for peer-to-peer transactions without central clearing houses, without central banks!”

Excerpt from Futuremoneytrends