Central Banks in the Age of Blockchains

[l3jmr]

This week, the Financial Times reported that the IMF, (International Monetary Fund) and the World Bank, are launching a “Learning Coin” on a private blockchain to gain a better understanding of how blockchains work.

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 recognise 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.”

what do you think will be the implications?

https://www.altcoinsidekick.com/blog/chain-reaction

[Haunebu]

A thread regarding this topic was created recently and many posters have already responded there including me. Check this link:

https://bitcointalk.org/index.php?topic=5137537.msg50854631#msg50854631

Everyone need to understand they are interested in the tech behind Bitcoin(Not BTC itself) in order to create their own centralized coin probably.

[Awesomus Maximus]

Yep, the central banks, the IMF included, won't survive if cryptocurrencies, in their original form and idea spread around the world. So they have to do something now, while it is still not so dangerous. And first thing to do is to learn about the technology behind. Learn about your enemy so that you can defeat it. Other than that I see no purpose to their centralized Learning Coin. On second thought if they want to learn, what's keeping them to buy some bitcoins and join this forum. Best way by far.

[carter34]

Asking for the implication, I think that one simple implication is that it is likely to increase the bitcoin awareness. Such is because, people's confidence will increase since the banks and IMF have started understudying the blockchain tech. I think that it will show in the movement of price.

[Beerwizzard]

Central banks are regulating monetary supply in their countries. They are printing new money not because they are so dumb and they inflating their currencies but because they need to boost growth of their economy. There is absolutely no gap between economy and technology of blockchain. They are just operating in different fields and central banks don't really care about it.

[bitbunnny]

Central banks are regulating monetary supply in their countries. They are printing new money not because they are so dumb and they inflating their currencies but because they need to boost growth of their economy. There is absolutely no gap between economy and technology of blockchain. They are just operating in different fields and central banks don't really care about it.

I can agree with the first part of your explanation and yes, central banks are there to care about monetary stability and support the conditions for stable economy.
But I don't agree that they don't care about blockchain. They are also very well aware of future and developing technologies, they can't escape that. But they are obliged to a lot if law regulations and therefore more cautious. But cryptocurrencies will not endanger them because they will adjust.

[Beerwizzard]

Central banks are regulating monetary supply in their countries. They are printing new money not because they are so dumb and they inflating their currencies but because they need to boost growth of their economy. There is absolutely no gap between economy and technology of blockchain. They are just operating in different fields and central banks don't really care about it.

I can agree with the first part of your explanation and yes, central banks are there to care about monetary stability and support the conditions for stable economy.
But I don't agree that they don't care about blockchain. They are also very well aware of future and developing technologies, they can't escape that. But they are obliged to a lot if law regulations and therefore more cautious. But cryptocurrencies will not endanger them because they will adjust.

Surely they can implement blockchain into their activities, but it would be something like a cyber security blockchain project or some blockchain database. It is good but it is not a groundbreaking change that would change the way central banks and global economy work. Everything would remain the same but someone would be able to cut some costs with a help of blockchain.

[xvids]

Central Banks need to adopt crypto too because crypto currency is going to play a huge part in the future and we could see it now.
They need to accept it or be outdated we all know that crypto is being used by other as a bank .
There are people who choose to keep their money in crypto rather than the banks.
So the central banks need to adopt it and be part of it.

[Timmzzy]

Asking for the implication, I think that one simple implication is that it is likely to increase the bitcoin awareness. Such is because, people's confidence will increase since the banks and IMF have started understudying the blockchain tech. I think that it will show in the movement of price.

If there won't be another sort of regulations in future that will drive away investors and as well making the community to loose hope on bitcoin. We all are just hoping and waiting to see bitcoin have more value in future.

[Ailmand]

I have read this article before and there had been a same topic of this as mentioned from the first post.

It is actually good for the whole crypto community that financial institutions and banks are starting to consider blockchain technology. They are starting to learn more about it and trying to see if this can be useful to them, well honestly it is.

[traderethereum]

Finally, they are launching their coin by themselves
I already thinking about the world bank and the IMF will launch their coin since one or two years ago and now, I see that they really launch the coin.
I think it's great news for cryptocurrency because the IMF and the world bank is the big institution in the world and they are interested in cryptocurrency, and I am sure that they were investigating about blockchain from a long time ago.
Maybe they are researched from the first time blockchain was release and they still research in secretly. And now it's the time for them to release their coin to the public.

[Genemind]

It's just a simple indication that it's never too impossible for banks to accept and adopt cryptocurrency. Knowing that they're going to launch a new coin would be considered as a good thing and a sign of another adoption in the future. Once they accept the fact the importance of crypto, having an international digital currency would be easy.

[Japinat]

It's a good action from them, recognizing the growing crypto industry will later results to regulation.

This is money so IMF should be concern about this, all the government agencies that are deals with financial regulation should come together to create a well thought crypto regulation. This is the solution of increasing scams in the market, we badly need regulation the soonest.

[el kaka22]

I think at least IMF is smart to know that they can't be left behind in this war and when there is a chance to send millions of dollars in a minute for just couple dollars it is impossible to not check it out. If these banks and funds spend thousands upon thousands of dollars and have insane amount of paper work to actually do what they have been doing and find a way to actually make it faster and cheaper it would be insane to not look at it.

Think about each country having some sort of crypto currency they all use with IMF, and than IMF helps them out by sending that crypto instead of money and they could cash it out to pay off their debtors which could be recouped by debited countries and payback the IMF, that would literally make this whole months long scenario just doable in a day.

[sheenshane]

I already saw a post regarding this and as much as I remember, the IMF is being ready to provide this Learning Coin as a structure/platform to monitor how would a cryptocurrency work. It means that all the pro's and cons will be checked without any flowery stuff. The problem is, the IMF could use this against the whole blockchain technology but we will see it soon.

[50 Cent]

all people and institutional research about blockchain behind of cryptocurrency, but not to adopting one of cryptocurrency, they could be make one for testing purpose i thing. for payment and other i thing they are there is'nt

[Cosbycoin]

This week, the Financial Times reported that the IMF, (International Monetary Fund) and the World Bank, are launching a “Learning Coin” on a private blockchain to gain a better understanding of how blockchains work.

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 recognise 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.”

what do you think will be the implications?

https://www.altcoinsidekick.com/blog/chain-reaction

If central banks decided to build a blockchain it will be a lot different from what we have right now. The blockchain we have now and cryptocurrencies are not being regulated , but whatever central banks will use to offer will he regulated and they are not going to do it in a way to replace banks and the current monetary system , it will just be a way for them to improve their services and make things faster and more transparent. We don’t know yet, we can only hope for the best to happen and nothing else.

[beerlover]

It's just a simple indication that it's never too impossible for banks to accept and adopt cryptocurrency. Knowing that they're going to launch a new coin would be considered as a good thing and a sign of another adoption in the future. Once they accept the fact the importance of crypto, having an international digital currency would be easy.

They all know the importance of cryptocurrency to people, economy and even to their own operation, but the only problem they have been having with the blockchain technology is that aspect of making transactions of users invisible to them, even if they regulate it.

The best may be for government to create their own cryptocurrency coin using the central banks, and then impose the use of it on people, but it will still be more like operating on a centralized market system, which people may not pay attention to, so right now, I still don’t know what will prompt the government into adopting crypto fully.

[Bitcotalk]

It's a good action from them, recognizing the growing crypto industry will later results to regulation.

This is money so IMF should be concern about this, all the government agencies that are deals with financial regulation should come together to create a well thought crypto regulation. This is the solution of increasing scams in the market, we badly need regulation the soonest.

I think that this technology has the potential required to obsolete banking system of the market and replace them with decentralized financial system which is pretty obvious and understandable if you understand the tech. It is high time for them do launch their own coin because not doing so is not profitable and they wants to stay in the safe zone. In addition, it will give a boost to the crypto expansion as well.

[target]

Certainly banks are interesting to use the technology, it would be interesting if they use Ether or any other platform for their projects, right now the only that claims that they are going to be used by banks was XRP which somehow its unsure if it were true though there were articles about it. They may be creating their own by now which IMF will play bigger role too.