IMF: The rise of digital currencies

[_JamesBond_]

The IMF published a blog outlining the potential benefits and drawbacks of adopting new digital payment methods including stablecoins.
The IMF stated in a recently published blog "The Rise of Digital Currency" that a stable currency (a digital currency linked to physical assets or fiat currency, designed to minimize price fluctuations) may bring significant benefits to customers and society, but it is not There is no risk
The International Monetary Fund said banks may lose their intermediary role because the public will turn to stable currency asset providers. However, the report predicts that banks will not disappear because they may compete by developing their own innovations.
The blog post further pointed out that new monopolies represented by technology giants may emerge. Technology companies can use their networks to avoid competitors and monetize their data.
The IMF said that policymakers need to strengthen consumer protection and financial stability, and respond to the risk of mint tax losses. The blog pointed out that in countries affected by inflation, a stable foreign currency currency may replace the local currency, which may undermine monetary policy and financial development.
According to the International Monetary Fund, stablecoins may also promote illegal activities, including money laundering and terrorist financing.
The blog post stated: "New technologies provide opportunities to improve surveillance, but regulators need to adapt to a more decentralized and geographically diversified stable asset value chain,"
At the same time, the IMF recommends that the stablecoin mechanism can realize the seamless payment of blockchain assets, reduce costs and increase transaction speed.
The IMF added: The biggest attraction comes from networks that promise to make transactions as easy as using social media. Stablecoin provides the possibility to better integrate into the digital life, and is designed by a user-centric design company. "
The International Monetary Fund proposes that network effects may trigger a wave of large-scale use of new digital currencies. The IMF later revealed that its goal is to establish a conceptual framework to classify new digital currencies such as Facebook's Libra and stablecoins, and consider the impact on central bank policies.
IMF President Christine Lagarde said that central banks and financial institutions should protect consumers and be open to innovations such as cryptocurrencies.
Facebook ’s Libra encryption project was first announced in June 2019. Libra will play the role of a stable currency, backed by a basket of global currencies, which currently includes the US dollar, Euro, Japanese yen, British pound and Singapore dollar. In July, the House Financial Services Committee and the Senate Banking Committee held hearings on Libra issues. At that time, lawmakers raised questions about how the Facebook blockchain project will operate, whether it will affect the U.S. or the global economy, and other areas of concern. question.


What do you think of this？ welcome to comment。

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[DooMAD]

You need to include a link to provide attribution to the source.

It doesn't surprise me that the IMF would fixate on stablecoins.  The ones where there's a centralised entity holding the reserve.  Naturally that would appeal to their desire for relevancy in a world that would otherwise see them defunct.  Problem is, stablecoins are one of the biggest ticking time-bombs in crypto.  It's only going to take the collapse of one stablecoin for people to realise how much you need to trust the entity holding the reserve and how deeply flawed a concept that is compared to Bitcoin and its trustless algorithmic emission schedule.

[hd49728]

The rise of digital currencies from government and the latest response from Facebook with their Facebook shop are all bring the world closer to the digital area for financial aspect. Despite of their different purposes, and opposite target, I think them all good for crypto.

While governments want to have better control on their citizens and easier to print more money, this time with digital central-bank currencies, they don't need print, paper, huge factories to do this, just a computer and some lines of codes.

Facebook shop brings the Libra comes to real life. There are more things to be done and more targets to be reached but Facebook actually jumped another high step towards their goals.

[freedomgo]

Too long to read, but hey, I think IMF is right that the rise of digital currencies is happening and that includes crypto as well.

Digital currency makes transaction faster and safer against any virus and this would be the time that crypto regulation will just improve as we know how the government works, they always like everything to follow their system, decentralized per blockchain but we are not totally anonymous here as KYC in every platform that involve fiat will always be required by the authorities.

[TravelMug]

Sorry to tell but this is not a recent post coming from IMF, this was last year September 2019.

https://blogs.imf.org/2019/09/19/digital-currencies-the-rise-of-stablecoins/

Anyhow, it just outlines what we already know by know, stable coins has its pros and cons. Facebook is trying to have their own tokens/coins to have full control and same with the governments around the world issuing their "state-backed cryptocurrency". And maybe as a governing body, IMF may have to adopt new policies and regulations. Time is changing very fast, and I think IMF is doing its part to embrace cryptocurrency and blockchain technology.

[hd49728]

Not only digital currencies from governments but we also see the Facebook shop: https://www.nbcnews.com/tech/tech-news/facebook-launches-shops-feature-small-businesses-online-shopping-surges-n1210466.

With Facebook shop, Facebook takes another step to strengthen their ecosystem, and it is another step towards Libra. How about Facebook's competitors, Twitter ie. and other giant companies like Apple, Samsung, etc.? Will they keep patiently and inactively or will join the new party? I think the Facebook shop will put all of them into another race that is good for crypto.

[_JamesBond_]

Sorry to tell but this is not a recent post coming from IMF, this was last year September 2019.

https://blogs.imf.org/2019/09/19/digital-currencies-the-rise-of-stablecoins/

Anyhow, it just outlines what we already know by know, stable coins has its pros and cons. Facebook is trying to have their own tokens/coins to have full control and same with the governments around the world issuing their "state-backed cryptocurrency". And maybe as a governing body, IMF may have to adopt new policies and regulations. Time is changing very fast, and I think IMF is doing its part to embrace cryptocurrency and blockchain technology.

Yes, this was reported last year, and now BTC is indeed rising

[carter34]

Although is an old post but it is nice to bring it back at this time that crypto just start rising in popularity because it is also part digital currency. It rise has been after the last halving of bitcoin which witnessed the highest volatility in few months and took bitcoin to a new ATH and after that, all media are broadcasting on crypto activities. It is just wise to invest into it at the moment before it goes on too high.

[ethereumhunter]

It could be possible to happen in the future if people don't trust their banks. But digital currencies need the government to approve the digital currencies so it could be used as the payment systems. But we don't know what their agenda by saying that because I think there is a political reason if they say like that which we don't know the truth. But if they really want to make it real, then I think there will be a new regulation that they're announced to the government.

[jostorres]

The rise of cryptocurrency? You're only talking about stablecoins here and nothing else. And yes digital currencies are rising , that's why a lot of countries have been talking about creating their own cryptocurrencies, though most of them are not making any progress in it, and those that did were not able to get people to make use of their cryptocurrency.

China is the next country that's talking about creating their cryptocurrency. But, will their citizens be interested in making use of their cryptocurrency that's created by the government? It might still die off like other cryptocurrencies that were created in other countries by the government.

[Raflesia]

China is the next country that's talking about creating their cryptocurrency. But, will their citizens be interested in making use of their cryptocurrency that's created by the government? It might still die off like other cryptocurrencies that were created in other countries by the government.

I heard the news that China will make its own digital currency, will the people be interested? of course because it was made by the government so that people do nothing but use the money, but will digital money be recognized by the world?

Cryptocurrency is still part of the world that accepts it and some reject it because there is no guarantee in everything.

[Ozero]

The rise of cryptocurrency? You're only talking about stablecoins here and nothing else. And yes digital currencies are rising , that's why a lot of countries have been talking about creating their own cryptocurrencies, though most of them are not making any progress in it, and those that did were not able to get people to make use of their cryptocurrency.

China is the next country that's talking about creating their cryptocurrency. But, will their citizens be interested in making use of their cryptocurrency that's created by the government? It might still die off like other cryptocurrencies that were created in other countries by the government.

The population’s digitized currencies, that is, stable coins of the central banks of these states, will be used by the population in the same way as they had previously used in a different combination - cash or non-cash, the currency of this state.
The spread of the coronavirus revealed yet another cash vulnerability and prompted states to make more use of non-cash payment methods, including by expanding the use of digital currencies. Therefore, of course, the world is moving towards digital currencies. Decentralized cryptocurrency gets another chance for its development.

[bitbunnny]

If under term of rise you mean that digital currencies are being more used then this is probably correct.
With development of new technologies and the fact that we are living in digital era then this is kind of logical path. Also, I think that all this situation about pandemic helped the rise of cryptocurrencies.
I think there is no way back and from current point we can only go further with more progress and more development.

[Sanugarid]

China is the next country that's talking about creating their cryptocurrency. But, will their citizens be interested in making use of their cryptocurrency that's created by the government? It might still die off like other cryptocurrencies that were created in other countries by the government.

I heard the news that China will make its own digital currency, will the people be interested? of course because it was made by the government so that people do nothing but use the money, but will digital money be recognized by the world?

It is true that China is making a way on digital currency, In fact they are began assessing it since last year on their 4 major cities which is Shanghai, Beijing, Tianjin and Shenzhen. They already determined this 6 years ago, in 2014 the things were already under development coz they thought that a state-backed digital currency could protect the financial structure which is what we are going to see in the latter of 2021 or 2022. Will people be interested by digital currencies? YES, I do think so, since we have seen a huge growth in the cryptocurrency community it's not impossible for the digital currencies to be supported.

Cryptocurrency is still part of the world that accepts it and some reject it because there is no guarantee in everything.

Cryptocurrency is part of digital currency, basically it's a part of it. What people don't know is that there are legitimate currencies available online.

[BrewMaster]

that's true that a stable coin would provide a lot of what has been sorely missing but the problem is that the most important factor that is missing (before the price being "stable") is decentralization. a stable coin that is centralized is no different than fiat and the banking system! specifically Libra that was mentioned is a centralized coin. so it really doesn't matter if it is stable or not because we don't see any difference between it and fiat.

[thesmallgod]

It means the future digital currencies will be stablecoin because other cryptocurrencies cannot minimize price fluctuation which is one of the drawback facing  crypto. IMF also have seen growing prospect of digital currencies and the bank might embrace digital currencies too by offering financial services rendered by the fintech companies. The more they realize this now the better for them

[kryptqnick]

Sorry to tell but this is not a recent post coming from IMF, this was last year September 2019.

https://blogs.imf.org/2019/09/19/digital-currencies-the-rise-of-stablecoins/

Anyhow, it just outlines what we already know by know, stable coins has its pros and cons. Facebook is trying to have their own tokens/coins to have full control and same with the governments around the world issuing their "state-backed cryptocurrency". And maybe as a governing body, IMF may have to adopt new policies and regulations. Time is changing very fast, and I think IMF is doing its part to embrace cryptocurrency and blockchain technology.

Yes, this was reported last year, and now BTC is indeed rising

There is a big difference between Bitcoin and what the IMF is talking about. Digital currencies they're talking about are centralized, backed up by fiat and regulated. Bitcoin is the opposite. The common thing is using blockchain, but that's about it for the similarities. Moreover, Bitcoin isn't really rising. The price is fluctuating, and the adoption rates are still low. Plus, all this has nothing to do with IMF or that specific report of theirs. If anything, I am pretty sure they are against true cryptocurrencies like Bitcoin. And they are probably hoping to attract inexperienced users to regulated pseudo-cryptocurrencies, so that they don't adopt the real ones.

[davis196]

I don't care about the opinions coming from the IMF.The International Monetary Fund is an malicious institution and it has to be destroyed.IMF is guilty for the financial and economic crisis inside several countries in Asia,Africa and Latin America.I "fiat money" financial institution is focusing on stablecoins rather on Bitcoin.Don't you wonder why?I think it's because stablecoins are nothing more than fiat money derivatives that pretend to be cryptocurrencies.IMF would never support mass Bitcoin Core adoption.

[salamat700]

I agree with some points presented by IMF on that published material. One is that banks, having been here for a lot of time and having the resources they can easily use will try to adopt to what and where the market is headed to. Cryptocurrency can be the thing they can not anymore avoid to tackle and they can introduce their own version of it and introduce it to their captured clients or customers. However, this can only mean one thing: a big validation of the value of cryptocurrency and so people can choose between something that is controlled by the banks or one that is decentralized...or maybe at the end people can be using both.