Cryptomustar
Monday, May 23, 2022
  • Home
  • Altcoin
  • Bitcoin
  • Ethereum
  • Litecoin
  • Cryptocurrency
  • Blockchain
  • Regulation
  • Market
  • Prices
  • ICO
No Result
View All Result
  • Home
  • Altcoin
  • Bitcoin
  • Ethereum
  • Litecoin
  • Cryptocurrency
  • Blockchain
  • Regulation
  • Market
  • Prices
  • ICO
No Result
View All Result
Cryptomustar
No Result
View All Result
Home Regulation

Central Bank Digital Currency ‘Incredibly Rich Area’ Says IMF

by admin
August 24, 2020
in Regulation
0
Central Bank Digital Currency ‘Incredibly Rich Area’ Says IMF
0
SHARES
6
VIEWS
Share on FacebookShare on Twitter



RELATED POSTS

G7 says crypto regulation must be swift and comprehensive

US Congress introduces record number of crypto related bills

Tao Zhang, Deputy Managing Director of the International Monetary Fund (IMF) has made a strong argument for the development of Central Bank Digital Currency (CBDCs). He asserts that as a new asset class they hold tremendous promise, notably for the developing world.


BENEFITS OF DIGITAL CURRENCY EMPHASIZED

Zhang discussed CBDCs in an address given at a conference hosted by the London School of Economics. He pointed to numerous advantages that these currencies can bring to the financial space, particularly by enabling rapid, seamless transfers and providing financial services for the unbanked.

Notably, however, was his recognition that a revolution is underway across the global economy, and that central banks must innovate in order to avoid being rendered obsolete. Specifically, he asserts that CBDCs have the potential to stem the growing popularity of stablecoins, which he stated “may be difficult to regulate and could pose risks to financial stability and monetary policy transmission.”

Zhang was also quick to point to the challenges that may come with the mass adoption of these assets. Most notably, the current global financial space is not designed to accommodate borderless digital currencies. Thus, one or a select few strong CBDCs could come to dominate the world. He referred to this possibility as “dollarization.”

On the one hand, a CBDC used as an international means of exchange could improve the efficiency of cross-border payments, which are currently costly, slow, and opaque. But at the same time, CBDC available across borders could increase the probability of currency substitution (“dollarization”) in countries with high inflation and volatile exchange rates, and therefore reduce the ability of the central bank to conduct an independent monetary policy.

One interesting suggestion was the possibility of banks creating fiat-backed digital currencies, which Zhang termed “synthetic CBDCs.” Such tokens would enable the banking sector to assume the challenges related to managing these digital assets. For example, enforcing anti-money laundering and know-your-customer regulations. The tokens would, however, have the backing of a trusted central bank.

ADDRESS UNDERSCORES BLOCKCHAIN’S REVOLUTIONARY APPEAL

Over the past several months central banks across the globe have begun aggressively searching for a means to stem the mass adoption of cryptocurrencies such as Bitcoin. CBDCs are not an innovation introduced by these central authorities for the altruistic benefit of their users. Rather, central banks now understand that blockchain assets threaten to render them obsolete, and CBDCs are a desperate attempt to introduce viable competition.

The true challenge for central banks rests with the fact that the open, borderless, and anonymous nature of cryptocurrency cannot be replicated by any centrally controlled asset, even if it were digital. In fact, most fiat currency is already used in digital form. The private banking sector has come to realize this fact, and is now taking steps to form business models around blockchain technology. Perhaps the best move by central banks will be to acknowledge the changes ahead, and begin legitimizing this new asset class rather than seeking to undermine it.

What do you make of the IMF Director’s recent comments on central bank digital currency? Add your thoughts below!


Images via Shutterstock



Source link

Tags: AreaBankCentralCurrencyDigitalIMFIncrediblyRich
ShareTweetShare

Related Posts

G7 says crypto regulation must be swift and comprehensive

G7 says crypto regulation must be swift and comprehensive

by admin
May 21, 2022
0

Finance Ministers and Central Bank Governors from the G7 met last week to discuss global economic conditions, including cryptocurrency.The...

US Congress introduces record number of crypto related bills

US Congress introduces record number of crypto related bills

by admin
May 21, 2022
0

The U.S. Congress has introduced over 80 new bills for consideration related to the crypto industry, so far, of...

South African central bank mulls digital rand to streamline cross-border payments

South African central bank mulls digital rand to streamline cross-border payments

by admin
May 20, 2022
0

The South African Reserve Bank is mulling the issuance of a digital rand, Reuters reported on May 18, citing...

Coinbase launches new global crypto think-tank

Coinbase launches new global crypto think-tank

by admin
May 20, 2022
0

Leading cryptocurrency exchange, Coinbase has launched a new Coinbase Institute to advance policy debate around crypto and the future...

Stablecoins Receive Queen’s Blessings As UK Braces For Landmark Crypto Legislation

What now for stablecoins following the Terra UST disaster?

by admin
May 19, 2022
0

It’s been over a week since Terra UST de-pegged, triggering a massive market drawdown. UST’s market cap plummeted from...

POPULAR NEWS

4 Cryptocurrency that Blow Bitcoin Out of the Water

4 Cryptocurrency that Blow Bitcoin Out of the Water

September 25, 2020
Memoriae – Next Generation of Decentralized Cloud Storage Based on Blockchain

Memoriae – Next Generation of Decentralized Cloud Storage Based on Blockchain

July 1, 2021
Apollo CBDC: The CBDC Platform that can Power Economies

Apollo CBDC: The CBDC Platform that can Power Economies

October 6, 2020
Stratus: The Most Feature Rich Social Media Network

Stratus: The Most Feature Rich Social Media Network

September 9, 2020
Binance Coin (BNB) erupts above $270 as the whole Smart Chain ecosystem soars

Binance Coin (BNB) erupts above $270 as the whole Smart Chain ecosystem soars

February 19, 2021

EDITOR'S PICK

What Advisors Need to Know About Crypto Taxation

What Advisors Need to Know About Crypto Taxation

February 25, 2022
EOS Foundation CEO: ‘EOS as It Stands Is a Failure’

EOS Foundation CEO: ‘EOS as It Stands Is a Failure’

November 3, 2021
Metaverse Startup The Sandbox Closes $93M Series B Led by SoftBank

Grayscale Says Metaverse Is A Trillion Dollar Market Opportunity

November 25, 2021
More Capital Ready to Enter Bitcoin, Reveals On-Chain Indicators

More Capital Ready to Enter Bitcoin, Reveals On-Chain Indicators

February 2, 2021

About

We publish a comprehensive news feed covering all news relevant to the crypto user, covering main industry news, politics and regulation as well as consumer-level “news you can use” (practical stuff), including handy DIY tips, links to useful tools, unbiased reviews and opinions revolving around cryptocurrency. Simple logic and real-world examples are preferred before technical jargon and personal rants.

Follow us

Categories

  • Altcoin
  • Bitcoin
  • Blockchain
  • Cryptocurrency
  • Ethereum
  • Litecoin
  • Market
  • Press Release
  • Regulation
  • Uncategorized

Recent Posts

  • Capitrade Ventures Sets To Assist Early Blockchain Projects
  • Fantom Maker Announces the Closing of Its $1.8m Private Rounds Led by Dao Maker and Halvings Capital
  • Cardano IDO LaunchPad “Coollaunch” Records a buzzing progress as it Sells Out 0ver 11% Of $COOL Tokens Within Days
  • BabyMusk Coin Launches, As It Aims To Be The Next Big MEME Coin
  • About Us
  • Privacy Policy
  • Contact Us

© 2020 cryptomustar.com

No Result
View All Result
  • Home
  • Altcoin
  • Bitcoin
  • Ethereum
  • Litecoin
  • Cryptocurrency
  • Blockchain
  • Regulation
  • Market
  • Prices
  • ICO

© 2020 cryptomustar.com

  • YAM v2YAM v2(YAMV2)$4.70-1.41%
  • yfBetayfBeta(YFBETA)$4.27-0.10%
  • IDLEIDLE(IDLE)$1.44-12.39%
  • WPP TokenWPP Token(WPP)$0.006826-3.49%
  • DSLA ProtocolDSLA Protocol(DSLA)$0.003681-6.85%
  • lympoLympo(LYM)$0.004392-4.43%
  • Werewolf CoinWerewolf Coin(WWC)$0.098082-2.58%
  • PolkaBridgePolkaBridge(PBR)$0.439784-6.92%
  • Dev ProtocolDev Protocol(DEV)$1.76-16.14%
  • EvidenZEvidenZ(BCDT)$0.122949-3.85%