Christine Lagarde, director of the International Monetary Fund (IMF) in Singapore, issued a digital call Wednesday (November 14) to the audience at the Singapore Fintech Festival, Security and consumer protection.
Uruguay, China and Sweden are considering virtual currency adoption, the government pointed out, by issuing digital currencies, that private companies can meet their public policy goals with less motivation to achieve.
"Banks are not in a hurry to provide services to the poor and rural population," Lagarde said.
The role of the state to regulate money has been changed by fintech or financial technology, revolution.
"The fintech revolution is a question about coins and commercial deposits, and it raises the role of the state in providing money," she said.
But millennial generations with telephones are also seeing how the economy works and the money itself is re-emerging.
She said digital currencies could make social media more convenient to use and integrate. It's easy to use for online and one-on-one use, including underage payments.
"Of course, we expect it to be cheap and safe and to protect the criminals and protesters," she added.
This evolution can not be ignored. "If the majority of people in a country adopt digital forms of money," the cash infrastructure will deteriorate and lag behind those around, "she said.
LaGarde urged the government to take the lead, while central banks said they could mitigate concerns about the rise of cryptocurrencies by issuing digital currencies. More commonly cryptocurrencies now include bitcoin, ethereum and dogecoin.
Private companies may underestimate security during the early days of Crypto. Trust in digital calls will erode when a private system fails.
"The resilience could be worse. If only a few links are linked, the system may not work. Think about cyber attacks, defects, bankruptcy or withdrawal from the local market." He added.
Lagarde said the central bank could design digital currencies by authenticating customers and recording transactions with customers whose identity is in compliance with due diligence procedures.
"But identity will not be disclosed to third parties or governments unless the law requires it," she added. If the authorities suspect money laundering or terrorist financing activities, you can remove the anonymous veil.
She said the central bank does not have to go on its own but can work with private companies to offer solutions that can thrive in financial innovation.
"Banks and other financial institutions, including start-ups, can manage digital currencies," he added, adding that the central bank can focus on back-end payments.
"This is a public-private partnership," Lagarde said.
Ravi Menon, head of monetary authority in Singapore, said the central bank in the Republic has no strong claims to issue digital currencies because the digital payment network is already in electronic trade this March.
Prime Minister Narendra Modi of India said on Wednesday that the fintech revolution has helped South Asia by making progress in digital banking, biometrics and connectivity.
He said digital banking through mobile phones allowed millions of people to be "insured with a bank account and able to get old-age pensions."
"Students can transfer their scholarships (money) directly to their accounts. They will no longer lose (paperwork)."
The Singapore Fintech festival, which will be held at the Singapore Expo, will end on Friday.