Lagarde calls for measured approach to monitoring digital currencies

Christine Lagarde, nominee for the presidency of the European Central Bank, has issued a statement to the Economic and Monetary Affairs Committee of the European Parliament in which she lays out the principles that will guide her approach if her nomination is successful.

In her statement, Lagarde notes that while central banks should "ensure the safety of the financial sector," they should also be open to "the opportunities provided by change." Specifically, Lagarde acknowledges digital currencies as an area rife for innovation, "In the case of new technologies – including digital currencies – that means being alert to risks in terms of financial stability, privacy or criminal activities, and ensuring appropriate regulation is in place to steer technology towards the public good. But it also means recognising the wider social benefits from innovation and allowing them space to develop."

Lagarde was formerly Managing Director of the International Monetary Fund. In July, she was nominated to succeed Mario Draghi as the President of the European Central Bank.