IMF's Lagarde Counters Crypto Warnings With New Praise Of 'Potential Benefits'

The head of the International Monetary Fund Christine Lagarde was buoyant about cryptocurrency in a blog post in support of the technology, published Monday, April 16.

The post, which comes roughly one month after Lagarde cautioned against the "Dark side" of cryptocurrency, sees the IMF leader focus on what she describes as the "Potential benefits" of "Crypto-assets such as Bitcoin."

"A judicious look at crypto-assets should lead us to neither crypto-condemnation nor crypto-euphoria," she writes.

"Understanding the risks that crypto-assets may pose to financial stability is vital if we are to distinguish between real threats and needless fears. That is why we need an even-handed regulatory agenda, one that protects against risks without discouraging innovation."

She continued, "A clear-eyed approach can help us harness the gains and avoid the pitfalls of the new crypto-assets landscape."

Lagarde's call for a balanced outlook on cryptocurrency comes at a time of increasing regulatory involvement in the industry, while traditional financiers continue to call Bitcoin a 'bubble' and pundits spy the start of a market surge.