The fund will greatly expand to cover all aspects of digital currency and payments will become simpler, faster, less expensive, and more accessible, and they will transcend borders quickly.
According to Reuters, the International Monetary Fund (IMF) intends to “step up” its oversight of digital currencies.
This statement of intent, which was released in an IMF study on Thursday, explains how the fund intends to “handle this far-reaching and complicated transition” to a digital economy.
The paper states, “Rapid technical innovation is ushering in a new era of public and private digital money,” emphasizing the advantages of digital assets. “Payments will become simpler, faster, less expensive, and more accessible, and they will transcend borders quickly.
These enhancements could boost efficiency and inclusivity, which would be beneficial to everyone.”
However, such implementations can only take place if the IMF is able to “keep pace with policy problems,” which necessitates a more in-depth examination of digital economies as a possibility.
While extending its own digital money research, the fund wants to collaborate with institutions “compatible with its purpose,” such as central banks, regulators, and the World Bank.
The IMF plans to recruit five sets of experts to properly conduct research, according to a report published in April 2021.
Lawyers, digital risk experts, financial sector experts, fiscal economists, and data professionals are among their qualifications. According to the report, this set of abilities should encompass all aspects of digital currency research.
The fund will invest in CBDCs (Central Bank Digital Currencies), stablecoins, crypto assets, and other digital assets.
It will look at how these assets symbolize financial independence if they can be used as reserve currencies, and whether they can be used to replace current payment systems.
The IMF issued a warning about El Salvador’s new Bitcoin law earlier this week. While the warning did not specifically reference the country, it stated that “granting crypto assets legal tender status” might endanger local economies, as well as the time-consuming process of citizens “choosing which money to hold.”
In contrast, the IMF stated earlier this month that CBDCs might provide a “clean slate” for the global financial system.