IMF and World Bank explore crypto merits with blockchain project

[alyssa85]

https://www.ft.com/content/1cfb6d46-5d5a-11e9-939a-341f5ada9d40

The International Monetary Fund and the World Bank have launched a private blockchain and quasi-cryptocurrency called “Learning Coin” to better understand the emerging technology.

The Washington-based multinational agencies stressed that “Learning Coin” will be inaccessible outside the World Bank and the IMF and have no monetary value whatsoever, and is therefore not a real cryptocurrency, like bitcoin.

However, its development has helped its staff become more familiar with principles like the distributed ledgers that underlie crypto assets, possible use cases like smart contracts and enhanced transparency, and challenges like facilitating money laundering.

In a statement the IMF said: “The development of crypto-assets and distributed ledger technology is evolving rapidly, as is the amount of information (both neutral and vested) surrounding it. This is forcing central banks, regulators and financial institutions to recognize a growing knowledge gap between the legislators, policymakers, economists and the technology. This project begins to bridge that gap and form a strong knowledge base of the technology among IMF and World Bank staff.”

The Fund said the Learning Coin app would serve as a “hub for knowledge” helping host their content like blogs, research, videos and presentations. Achieving certain educational milestones will allow World Bank and IMF staff to “earn” Learning Coins. They will have no real value, but the developers are testing how staff can redeem the coins for some kind of rewards, the statement said.

Obviously the tech behind crypto is a separate thing from the social use of crypto.

The IMF would have been better off monitoring real life use of crypto rather than artificially asking their staff to "earn" tokens.s process will allow the Fund/Bank to better understand how crypto assets could potentially be used in real life. The goal of this project is to promote knowledge — not bias. The app is a prototype that aims to show the good, the bad and the ugly of the technology, without hype or uninformed criticism.

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[ecnalubma]

Its a test Coin, somehow it will allow them to understand how cryptocurrency works. Maybe in the near future they Will upgrade their system by using cryptocurrency to help them speed up their transactions.

[Yakamoto]

Its a test Coin, somehow it will allow them to understand how cryptocurrency works. Maybe in the near future they Will upgrade their system by using cryptocurrency to help them speed up their transactions.

Cryptos wouldn't speed up their transactions, at least for internal transactions. It might help reduce the amount of paperwork they have to deal with when doing international transactions, in which cause it would be faster, but methods like PayPal, among others, are far faster than the average crypto transaction. Maybe once the Lightning Network is complete for Bitcoin there can be confidence that Bitcoin is at least as fast as most other payment methods, maybe even faster in some cases, and for sure faster for international transactions. I don't know what the IMF is trying to learn about cryptos with this project, but I hope it's something decent. Not a whole lot of good comes out of the IMF.

[traderethereum]

Its a test Coin, somehow it will allow them to understand how cryptocurrency works. Maybe in the near future they Will upgrade their system by using cryptocurrency to help them speed up their transactions.

I was thinking the same as you. I am sure IMF and World Bank have the resource to explore the blockchain project, and if they think the blockchain can solve their problem, they don't need a long time to apply or implement to the real blockchain.
But I am sure that blockchain will solve their problem.
So let's wait for the next update from them, and I hope that we will hear some good news and it will give a good impact on the cryptocurrency itself to grow the adoption process.

[Genemind]

Its a test Coin, somehow it will allow them to understand how cryptocurrency works. Maybe in the near future they Will upgrade their system by using cryptocurrency to help them speed up their transactions.

It's great that they are starting to study and created a simulation to be able to better understand and educate themselves about blockchain technology. If they see blockchain useful and if it will benefit them integrating and adapting it, this will be huge to the whole community as well.

[NavI_027]

It's great that they are starting to study and created a simulation to be able to better understand and educate themselves about blockchain technology.

Yup! There's a saying, "It's better late than never". Although this is only a simulation or a test of familiariing the concept of crypto, it was still good because at least they are now open to the new technologies this world can offer. However, it's very ironic that a centralized institution is now trying the decentralized way but nonetheless everything looks well. I hope theh will be enlightened after such test and later got a more positive perspective to the issue of using crypto unlike before.

If they found that their study really works then there's a tendency that they will release their official coin and let it circulate in the market, who knows? . (Just my own perspective lol)

[avikz]

Blockchain and crypto economy is the future! It's great to know that IMF and World Bank is taking things a bit more seriously and trying to understand that pros and cons of this new technology and its use cases! I am sure Mr. Nakamoto will be very happy to know that the revolution of decentralized economy is taking shape slowly which he had started all alone!

This particular news is worth more weightage than the news of Craig Wright and Nasdaq testing bitcoin trading! Because neither Craig nor NASDAQ can make a major impact on the crypto market compared to what IMF and World Bank can do to the economy! This is such kind of news which we all want to hear over and over again!

[Kemarit]

Its a test Coin, somehow it will allow them to understand how cryptocurrency works. Maybe in the near future they Will upgrade their system by using cryptocurrency to help them speed up their transactions.

It's great that they are starting to study and created a simulation to be able to better understand and educate themselves about blockchain technology. If they see blockchain useful and if it will benefit them integrating and adapting it, this will be huge to the whole community as well.

Right, what we like about those people behind those organizations is that they are willing to learn and educate themselves as to what this new technology could bring. Of course there's a lot of pros and cons, but if you weight everything and found out that this technology could really bring something to the table, then at least give it a try and see how happens instead of lot of bullshit attacks, just saying. So let's see how it pans out and I'm sure that they will be happy with the results of their simulation.

[Haunebu]

This particular news is worth more weightage than the news of Craig Wright and Nasdaq testing bitcoin trading! Because neither Craig nor NASDAQ can make a major impact on the crypto market compared to what IMF and World Bank can do to the economy! This is such kind of news which we all want to hear over and over again!

I partially agree with you. I do agree with the part about Wright and Nasdaq, but the IMF and World Bank testing the blockchain might not drive adoption rates upwards since they only like the tech behind crypto(Not crypto itself).

They might develop a coin of their own which would be 100% centralized and regulated which is why I am not really excited about this news.

[Beerwizzard]

The IMF would have been better off monitoring real life use of crypto rather than artificially asking their staff to "earn" tokens.s process will allow the Fund/Bank to better understand how crypto assets could potentially be used in real life.

People are using money for centuries. At least people were using coins already somewhere at VII century BC. Cryptocurrencies are also money so I guess organizations like IMF should already have plenty of experience about the usage of money in real life. I am very curious if you can  show me another usage of money except exchanging it to something else.

[kryptqnick]

https://www.ft.com/content/1cfb6d46-5d5a-11e9-939a-341f5ada9d40

The International Monetary Fund and the World Bank have launched a private blockchain and quasi-cryptocurrency called “Learning Coin” to better understand the emerging technology.

The Washington-based multinational agencies stressed that “Learning Coin” will be inaccessible outside the World Bank and the IMF and have no monetary value whatsoever, and is therefore not a real cryptocurrency, like bitcoin.

However, its development has helped its staff become more familiar with principles like the distributed ledgers that underlie crypto assets, possible use cases like smart contracts and enhanced transparency, and challenges like facilitating money laundering.

In a statement the IMF said: “The development of crypto-assets and distributed ledger technology is evolving rapidly, as is the amount of information (both neutral and vested) surrounding it. This is forcing central banks, regulators and financial institutions to recognize a growing knowledge gap between the legislators, policymakers, economists and the technology. This project begins to bridge that gap and form a strong knowledge base of the technology among IMF and World Bank staff.”

The Fund said the Learning Coin app would serve as a “hub for knowledge” helping host their content like blogs, research, videos and presentations. Achieving certain educational milestones will allow World Bank and IMF staff to “earn” Learning Coins. They will have no real value, but the developers are testing how staff can redeem the coins for some kind of rewards, the statement said.

Obviously the tech behind crypto is a separate thing from the social use of crypto.

The IMF would have been better off monitoring real life use of crypto rather than artificially asking their staff to "earn" tokens.s process will allow the Fund/Bank to better understand how crypto assets could potentially be used in real life. The goal of this project is to promote knowledge — not bias. The app is a prototype that aims to show the good, the bad and the ugly of the technology, without hype or uninformed criticism.

I think that it would make more sense for them to experiment and research actual cryptocurrencies, rather than an artificial pseudo-crypto. Who are they, children? Why do they need a special coin for learning purposes? These are professionals of the financial industry. They should experience what it is like to deal with a real decentralised volatile crypto. By playing around with a centralised and closed to the public simulation, they are only fooling themselves.

[target]

The test coin will just be the start of it, in the process once they knew how it works they will start finding ways to make crypto be useful or perhaps how we could spend coins everywhere in the world. They could have just tried BTC to test the market instead of using test coin because a live one will make them experience what we did. Do you think its possible that they be the one creating a platform for countries to have their own stablecoins?

[RodeoX]

I have explored and tested out bank money in the past. I didn't like it. 

[1Referee]

I have explored and tested out bank money in the past. I didn't like it. 

Most people here don't seem to like it, yet continue to use it in all its glory because there is no alternative capable of completely replacing the old system.

Fiat does its job extremely well when it comes to local day to day payments. In my case it's instant, free and there are certain rewards and even buyers protection. Considering that most average people don't conduct cross border payments, fiat in its current form (at least here in Europe) isn't going anywhere.

No one censors people's coffee or sandwich or grocery payments, so there is nothing here that will convince people that fiat is bad. Banks need to implode in people's face in order to realize how crappy this financial system is. As long as that doesn't happen, people will continue being average joes just minding their own business.

[Adriano2010]

Indeed there are some service who transfer faster than crypto, like PayPal, Skrill or Neteller, but if want ot withdraw from PayPal to card or to bank account will take a lot of time, and crypto solve this situation.

[hahahafr]

Actually not only these true reputable industries have taken interest in blockchain technology, there are a couple more institutions that are interested in all the benefits of blockchain technology. Most of them would definitely come on board with time.

[Ailmand]

It is not really far that these  institutions will make their way to study and learn about blockchain. It's great to see that they are open for this and that they are willing to accept and learn something new that might bring them benefit. I think banks will benefit big time on blockchain in terms of record tracking which would save them more time, effort, and resources. In time, blockchain technolgy will be widely adapted and accepted.

[andriarto]

Its a test Coin, somehow it will allow them to understand how cryptocurrency works. Maybe in the near future they Will upgrade their system by using cryptocurrency to help them speed up their transactions.

I was thinking the same as you. I am sure IMF and World Bank have the resource to explore the blockchain project, and if they think the blockchain can solve their problem, they don't need a long time to apply or implement to the real blockchain.
But I am sure that blockchain will solve their problem.
So let's wait for the next update from them, and I hope that we will hear some good news and it will give a good impact on the cryptocurrency itself to grow the adoption process.

I think, at least imf already learning about crypto, of course after this will have the conclusion of the advantages and disadvantages of crypto according to them. so I think this is an advance so that they can also encourage crypto growth

[alyssa85]

I have explored and tested out bank money in the past. I didn't like it. 

Most people here don't seem to like it, yet continue to use it in all its glory because there is no alternative capable of completely replacing the old system.

Fiat does its job extremely well when it comes to local day to day payments. In my case it's instant, free and there are certain rewards and even buyers protection. Considering that most average people don't conduct cross border payments, fiat in its current form (at least here in Europe) isn't going anywhere.

No one censors people's coffee or sandwich or grocery payments, so there is nothing here that will convince people that fiat is bad. Banks need to implode in people's face in order to realize how crappy this financial system is. As long as that doesn't happen, people will continue being average joes just minding their own business.

The only place the above is likely to happen is in the countries of the Eurozone, trapped as they are into restricritive policy that doesn't necessarily help them. Either they grow a pair and break out, or more likely German institutiions start campaigning about how dangerous it all is, at which point the whole thing fragments.

[sheenshane]

Indeed there are some service who transfer faster than crypto, like PayPal, Skrill or Neteller, but if want ot withdraw from PayPal to card or to bank account will take a lot of time, and crypto solve this situation.

I don't exactly see that point of having cryptocurrency to have faster transactions. Honestly, Paypal is so much advanced compared to cryptocurrency's blockchain technology. This prototype would help the people to test how cryptocurrency works and will let the people also feel the pros and cons. The blockchain technology is really an exciting technology that we would love to witness being developed.