“The digital currency revolution must work for everyone”: IMF raises challenges posed by “complex transition” to virtual formats

The International Monetary Fund (IMF) warned on Thursday that it will have to assume a fundamental role so that countries can “reap the benefits and manage the risks of digital currency”.

In two documents published on Thursday, the international credit organization considers that it should take on the role of “Follow, advise and help manage this complex and profound transition” towards virtual currencies.

“At the IMF, we need to identify and help countries resolve compromises and Deeper political challenges emerge», Indicates a press release signed by Tobias Adrian, financial advisor and director of monetary affairs and financial markets, and Tommaso Mancini-Griffoli, deputy division head of the monetary and capital markets department of this entity.

For the Fund, the digital currency can make payments more accessible, faster and cheaper, points out the report, and adds that these innovations are already a reality and continue to grow: “A local craftsman can receive cheaper payments, possibly from overseas customers, in an instant. A large financial conglomerate can liquidate asset purchases much more efficiently. Friends can split accounts without having to carry cash. People without a bank account can safely save and create transaction histories to obtain microloans, ”they illustrate.

Controlled use

In the text, the Fund’s advisers point out that the digital currency “Must be regulated, designed and provided so that countries retain control over monetary policy, financial conditions, the opening of capital accounts and exchange rate regimes. “

“The digital currency revolutionIt should work for everyone and countries should guide it, instead of being guided by technological transformations, ”says the IMF.

The document does a distinction between digital currencies of a central bank, stablecoins and electronic money, which it focuses on, and crypto assets, including bitcoin.

On the latter, the multilateral entity issued a statement earlier this week in which it warned that although some countries are considering adopting them as their national currency, “to do it is not easy”, because it implies substantial risks for macro-financial stability, financial integrity, consumer protection and the environment.

“Requires significant investments as well as difficult political decisions, how to clarify the role of the public and private sectors in the provision and regulation of digital forms of currency, ”his advisers said.