The International Monetary Fund, or IMF, plans to “step
up” its monitoring of digital currencies, according to
a report by Reuters. This intent, as published in
an IMF paper Thursday, details how the fund plans to “manage this
far-reaching and complex transition” toward a digitized economy.
“Rapid technological innovation is ushering in a new era of public
and private digital money,” the report reads, highlighting the benefits of
digital assets. “Payments will become easier, faster, cheaper, and more
accessible, and will cross borders swiftly. These improvements could foster
efficiency and inclusion, with major benefits for all.”
However, such implementations can only occur if the IMF can “keep
pace with policy challenges,” which require a deeper look into digital
economies as a prospect. The fund plans to work with institutions “consistent
with its mandate,” such as central banks, regulators, and the World Bank while
expanding its own digital money research.
As disclosed in an April 2021 paper, the IMF plans to add five
sets of experts to properly conduct research. Their skills include lawyers,
digital risk experts, financial sector experts, fiscal economists, and data
specialists. This set of skills should thoroughly cover research into the
digital currency industry, the paper claims.
The fund will target Central Bank Digital Currencies, or CBDCs,
stablecoins, cryptoassets, and more. It will examine how these assets represent
financial independence, can act as reserve currencies, and how they can replace
current payment systems.
Earlier this week, the IMF published a warning regarding
El Salvador’s recent Bitcoin law. While it didn’t mention the country directly,
the warning noted that “granting cryptoassets legal tender status” could
threaten local economies, not to mention the time-consuming process of citizens
“choosing which money to hold.” Conversely, the IMF went on record earlier this
month claiming that CBDCs could
provide the global financial system with a “clean slate.”
Cointelegraph.com