The financial system is still under a lot of pressure. Since the financial crisis of 2008, very little has changed to alleviate existing concerns. IMF chief Christine Lagarde acknowledges the global economy is not in the best of places right now. Additionally, she remains optimistic about the future of various cryptocurrencies.
The global economy is in bad shape
The 2008 economic crisis has shown the world how fragile the global economy really is. No country has been spared from the proverbial onslaught at that time. Ten years later, a lot of countries are still recovering from those setbacks. It seems as if the situation only grows worse as more time progresses. The recent development between the G7 and President Trump further confirms the situation isn’t evolving in a positive direction.
The G7 setback can turn out to be rather problematic. During the latest meeting, the objective was to create a free, fair, and mutually beneficial trading ecosystem for all parties involved. President Trump seemingly agreed at first, yet backed out of the deal in the end. Instead, he is showing signs of US-oriented isolationism, which will further fracture the brittle global economy.
In this sense, expressions and declarations like these were allowed to appear. “Diplomacy can not be dictated by” attacks of fury, “warned the president of France, Emmanuel Macron, after the conclusion of the G7 summit in Canada, which ended in acrimony.
Macron was referring to the tweets of US President Donald Trump, who cataloged his Canadian counterpart and host of the summit, Justin Trudeau, as “dishonest and weak” and withdrew his endorsement of the final document.
In this regard, the head of the IMF, Christine Lagarde, shares her concerns regarding this topic. She is convinced Trump is challenging the way trade is conducted and aims to damage business confidence. Additionally, Lagarde confirms the “dark clouds are forming” and the situation will continue to escalate beyond repair. Tensions are rising in the financial world, which also creates new opportunities for new assets to rise to the top.
The IMF, bitcoin and other cryptocurrencies
Despite these ongoing struggles in the financial sector, Christine Lagarde has an optimistic view for cryptocurrencies. More specifically, she previously reported how Bitcoin can enable fast and inexpensive transactions. It is a solution the financial sector has been looking for over the past few decades. However, this currency will not be used globally unless the proper regulation is put in place.
According to the IMF chief, the crypto assets which survive “can play a role in how people save, invest, and pay their bills”. That in itself is a major nod of approval toward Bitcoin and other similar currencies. Without the confidence and support of authorities and consumers, however, the cryptocurrency will continue to face an uphill battle first and foremost. This is already a symptom that can be taken into account, problems can be solved as long as there is a strong and united ecosystem.
For the time being, it remains how the IMF will move forward. There is little the organization can do to make President Trump rethink his current stance. Additionally, the favorable mindset toward crypto assets can have some interesting consequences in the years to come. Whether or not Bitcoin can save the global economy, is a different matter altogether. It is a global currency at its core, but it still needs to undergo major scaling improvements prior to being used on a much larger scale.
The world economy may be on the verge of immense financial problems, it is possible for nations to come together to help each other, but the concrete reality is that protectionism, represented by high taxes on raw materials, demonstrates the opposite, in these moments the distrust between the active actors can generate that the economies close and this same action can generate more economic problems.
In summary the blockchain-bitcoin technology can be on the verge of real proofs as to whether it can survive a financial crisis like the one that occurred in 2008, the time may be favorable, we still need to see how the ecosystem will act in a real crisis , cryptocurrencies in particular bitcoin, may be close to high prices, these can be the value shelters for a large amount of money that will drain from the bonds and toxic actions, time will tell. It waits for new ads.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.