The IMF published a blog outlining the potential benefits and drawbacks of adopting new digital payment methods including stablecoins.
The IMF stated in a recently published blog "The Rise of Digital Currency" that a stable currency (a digital currency linked to physical assets or fiat currency, designed to minimize price fluctuations) may bring significant benefits to customers and society, but it is not There is no risk
The International Monetary Fund said banks may lose their intermediary role because the public will turn to stable currency asset providers. However, the report predicts that banks will not disappear because they may compete by developing their own innovations.
The blog post further pointed out that new monopolies represented by technology giants may emerge. Technology companies can use their networks to avoid competitors and monetize their data.
The IMF said that policymakers need to strengthen consumer protection and financial stability, and respond to the risk of mint tax losses. The blog pointed out that in countries affected by inflation, a stable foreign currency currency may replace the local currency, which may undermine monetary policy and financial development.
According to the International Monetary Fund, stablecoins may also promote illegal activities, including money laundering and terrorist financing.
The blog post stated: "New technologies provide opportunities to improve surveillance, but regulators need to adapt to a more decentralized and geographically diversified stable asset value chain,"
At the same time, the IMF recommends that the stablecoin mechanism can realize the seamless payment of blockchain assets, reduce costs and increase transaction speed.
The IMF added: The biggest attraction comes from networks that promise to make transactions as easy as using social media. Stablecoin provides the possibility to better integrate into the digital life, and is designed by a user-centric design company. "
The International Monetary Fund proposes that network effects may trigger a wave of large-scale use of new digital currencies. The IMF later revealed that its goal is to establish a conceptual framework to classify new digital currencies such as Facebook's Libra and stablecoins, and consider the impact on central bank policies.
IMF President Christine Lagarde said that central banks and financial institutions should protect consumers and be open to innovations such as cryptocurrencies.
Facebook ’s Libra encryption project was first announced in June 2019. Libra will play the role of a stable currency, backed by a basket of global currencies, which currently includes the US dollar, Euro, Japanese yen, British pound and Singapore dollar. In July, the House Financial Services Committee and the Senate Banking Committee held hearings on Libra issues. At that time, lawmakers raised questions about how the Facebook blockchain project will operate, whether it will affect the U.S. or the global economy, and other areas of concern. question.
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