Bitcoin has received an unexpected boost from Christine Lagarde.
Ms. Lagarde mentioned in a blog post Bitcoin that enable faster transactions. Also, the underlying blockchain technology could make financial markets safer.
The price of the world’s most valuable cryptocurrency returned above $8,000 following the publication of Ms. Lagarde’s comments. But it is also unclear if the gains are directly attributable to the news.
“Just as a few technologies that emerged from the dot-com era have transformed our lives, the crypto assets that survive could have a significant impact on how we save, invest and pay our bills,” Ms. Lagarde wrote in the blog post.
“Before crypto-assets can transform financial activity in a meaningful and lasting way, they must earn the confidence and support of consumers and authorities,” Ms Lagarde wrote.
“An important initial step will be to reach a consensus within the global regulatory community on the role crypto-assets should play. Because crypto-assets know no boundaries, international cooperation will be essential.
She has also expressed her concerns over cryptocurrency. She has also expressed “perils that come along with a promise.” Such concerns also arise over new money laundering. It has also come with the purchase of buying drugs over the internet.
It has come along with the fact that bitcoin’s price surge in less than an hour over $1000.
“I personally think that the rise was due to a large institutional investor,” Olga Feldmeier, CEO of blockchain startup Smart Valor, told The Independent last week. “There are a lot of institutions, hedge funds and big investors waiting for the right to step in.”
These comments definitely must have triggered the most rightful sentiment in the market.