At the ongoing financial event called the Singapore Fintech Festival 2018 [November 12-16], the CEO of Ripple, Brad Garlinghouse, and IMF Deputy General Counsel, Ross Leckow, presented their views on the digital currency market. The pair also answered a few questions drafted by the audience. Here, the Ripple official indulged in a slightly controversial remark on central banks and their management of fiat money.
The first question was aimed at Leckow, demanding a response regarding IMF’s holdings in crypto-assets if any. To this, Leckow replied by stating that as an entity of the legal department, he is supposed to carry conservative views on such matters. He added:
“For that to happen, [in the] current framework, some country would have to use a crypto-asset as its currency.”
Next, another member of the audience sought his opinion on whether central banks would issue digital currency in the next few years. According to Leckow, extensive work is being carried out by a number of central banks across the global space.
However, he projected a general idea that many of these banks are landing the conclusion that they do not see any benefits currently. He added that these institutions are considering the use-cases, therefore, as the work progresses, the possibility of the issuance of digital assets may increase.
He cited the example of the Bank of Canada and mentioned a project named Jasper, which was designed for the purpose of experimentation in the field of digital assets. The IMF official noted that the project has not figured out any benefits. With an added hope, he explained:
“…but when combined with other things like the security settlement system, use-cases begin to emerge so lets keep an open mind.”
Distinct from the above point of view,