In the context of the current discussion of the digital currencies of the Central banks (CBDCs) examined the International monetary Fund (IMF), its possible role in future emissions of sovereign digital currencies.
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IMF weighs up the advantages and disadvantages of the CBDC from
In the beginning of December in the IMFBlog published analysis of the IMF has discussed his possible role in the emergence of the CBDC discussion, as well as the pros and Cons of sovereign digital currencies.
The Blog, according to the IMF has identified three areas in which Nations who want to introduce a CBDC can be helped. An excerpt from the blog post is:
“The IMF can help in three ways: by informing the policy debate by convening the relevant parties to discuss policy options, and by assisting countries in the development of policies. Since the CBDC to a new topic, was the IMF so far, especially in the first two areas, but he moves gradually in the third area, since the member countries are the options of the CBDC into consideration and advice.“
In terms of the CBDC even the IMF argues that sovereign digital currencies have several advantages, despite drawbacks such as the Disintermediation in the banking sector and the impact on international politics.
The Blog, according to the cost reduction in currency operations and the promotion of greater financial Integration are among the benefits. The IMF also notes that the CBDCs are make currencies a robust counterweight to private Crypto.
For the IMF, the dissemination of this private crypto projects believe represent decent risks for the integrity of the financial infrastructure of Nations. Several commentators from Mainstream financial circles to decry projects such as Libra due to similar concerns.
Agustin Carsten, head of the Bank for International settlements (BIS), noted at the beginning of December: The Central banks run the risk of losing their importance to private crypto-currencies. A former head of the Chinese Central Bank, argued at the beginning of the year even that Libra would work under the control of the IMF better.
2020 war the year of the CBDC -?
As with other comments on the topic of CBDCs, the IMF is linked to the upturn in the activities around sovereign digital currencies, with Facebook’s Libra. Since the publication of the Libra-white paper and the establishment of the Libra Association, some Central banks have begun to accelerate their CBDC plans.
So some say is already intensive CBDC-race previously, to characterize the crypto-discourse for 2020. Countries such as China, Sweden, Lithuania and a growing Pool of Nations have already begun to CBDC-explore options.
While the USA’s performance so far, from the CBDC-debate out of it, pushing several state actors in Europe in a concerted effort to introduce a regional digital currency – in the hope that a Chinese monopoly in the CBDC-to prevent scene.