The International Monetary Fund (IMF) has revealed the role it must play in courting the rapid advancement of digital money around the world.
The IMF recognizes the positive impact all forms of digital money, including central bank digital currencies and stablecoins, have on an economy, according to a Reuters report, based on a public policy paper released Thursday by the fund can, and points out the benefits, could promote financial inclusion.
“Rapid technological innovation heralds a new era of public and private digital money,” the report said, highlighting the benefits of digital assets. “Payments are becoming easier, faster, cheaper, more accessible and will quickly cross borders. These improvements could promote efficiency and integration, with great benefits for everyone. “
There is so much to achieving these benefits, and the IMF said it was ready to work with it Central banks around the world to monitor, advise and support “this far-reaching and complex transition” to a digital age of money. According to the paper, the IMF has also stated that it has “a vital role to play in helping its members reap the benefits of digital money and manage the risks”.
Research into financial innovation through the adoption of a central bank digital currency (CBDC) by central banks and cryptocurrencies by private issuers is undoubtedly gaining momentum today. In its role, the IMF has supported innovations of all kinds. However, it warns of the quick changeover by the monetary authorities to support volatile private cryptocurrencies as legal tender, as it has loudly criticized the associated move by El Salvador.
According to the Reuters report, the IMF wants governments to take advantage of the financial benefits of privately issued cryptocurrencies. However, it noted that “trying to make crypto assets a national currency is an inadvisable shortcut”.
Image source: Shutterstock