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

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

In two documents issued this Thursday, the international credit organization considers that it should assume the role of “monitor, advise and help manage this complex and far-reaching transition” towards virtual currencies.

“At the IMF we must identify and help countries resolve tradeoffs and Deeper political challenges emerging“says a statement signed by Tobias Adrian, financial advisor and director of Monetary Affairs and Financial Markets, and Tommaso Mancini-Griffoli, deputy chief of division in the Department of Monetary and Capital Markets of that entity.

For the Fund, digital money can make payments more accessible, faster and cheaper, highlights the report, and adds that these innovations are already a reality and are constantly growing: “A local artisan can receive payments cheaper, possibly from foreign clients, in an instant. A large financial conglomerate can liquidate purchases of assets much more efficiently. Friends can divide accounts without carrying cash. People without bank accounts can save safely and create transaction histories to obtain microloans, “they exemplify.

A controlled use

In the text, the Fund’s advisers emphasize that digital money “must be regulated, designed and provided so that countries maintain control over monetary policy, financial conditions, the opening of capital accounts and exchange rate regimes. “

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

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

On the latter, the multilateral entity had published a statement earlier this week in which it warned that, although some countries plan to adopt them as national currency, “doing it is not easy”, since this entails substantial risks to macro-financial stability, financial integrity, consumer protection and the environment.

“Requires significant investment as well as tough political decisions, how to clarify the role of the public and private sectors in the provision and regulation of digital forms of money, “said his advisers.

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