Blockchain Can Be Applied Prospectively in Finance, Healthcare, Insurance – Head of the IMF

Christine Lagarde, the head of the International Monetary Fund (IMF) expressed the view that the blockchain technology has great potential and among other areas of application could be useful in financial markets.

Arguing about the benefits of crypto-assets in her blog post, the IMF’s head shared her opinion on the blockchain, saying that “self-executing and self-enforcing smart contracts could eliminate the need for some intermediaries” in financial markets.

The main advantage of smart contracts is that they authenticate conditions before executing and thus eliminate the need for third parties. That is why smart contracts can be widely used in the financial sector.

At the same time, Lagarde noted that she does not think that blockchain could replace bankers and brokers.

Another case of blockchain usefulness that the IMF’s representative mentioned was about information security and personal data protection in such industries as healthcare or insurance. The blockchain technology allows to prevent leakage of sensitive information while ensuring its accessibility when needed.

Blockchain could also be helpful in securing property rights in developing countries, Lagarde acknowledged. She emphasized the importance of international collaboration regarding blockchain regulation.