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The fund will greatly expand to cover all aspects of digital currency while also working with related financial institutions.
The International Monetary Fund, or IMF, plans to âstep upâ 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 âmanage this far-reaching and complex transitionâ toward a digitized economy.
âRapid technological innovation is ushering in a new era of public and private digital money,â the report reads, highlighting the benefits of digital assets. âPayments 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.â
Related: IMF plans to meet with El Salvadorâs president, potentially discussing move to adopt Bitcoin
However, such implementations can only occur if the IMF can âkeep pace with policy challenges,â which require a deeper look into digital economies as a prospect. The fund plans to work with institutions âconsistent with its mandate,â 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.
Related: Steve Hanke warns BTC could âcompletely collapse the economyâ of El Salvador
Earlier this week, the IMF published a warning regarding El Salvadorâs recent Bitcoin law. While it didnât mention the country directly, the warning noted that âgranting cryptoassets legal tender statusâ could threaten local economies, not to mention the time-consuming process of citizens âchoosing which money to hold.â Conversely, the IMF went on record earlier this month claiming that CBDCs could provide the global financial system with a âclean slate.â
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