Guest views are now limited to 12 pages. If you get an "Error" message, just sign in! If you need to create an account, click here.

Jump to content
  • CRYPTO REWARDS!

    Full endorsement on this opportunity - but it's limited, so get in while you can!

The IMF calls on central banks to study the issuance of electronic currencies


Butifldrm
 Share

Recommended Posts

The IMF calls on central banks to study the issuance of electronic currencies

The IMF calls on central banks to study the issuance of electronic currencies
 


 14 November 2018 05:23 PM
Direct : noted Director of the International Monetary Fund , Christine Lagarde , the direction of the need for central banks to consider a proposal for a digital version of currencies.

Lagarde said at a conference in Singapore on Wednesday that various central banks around the world were seriously considering the issue, and while the state of digital currencies was not universal, we should check them more seriously, eagerly and creatively.

"I think we should consider the possibility of issuing a digital currency, and the state may have a role in providing money for the digital economy," Lagarde said. 

The IMF Director believes that this currency can meet policy objectives, such as financial inclusion, security and consumer protection; and what the private sector can not offer, namely, the privacy of payments.  

Therefore, Lagarde believes that encrypted currencies seek to establish confidence in technology. "As long as it is transparent, and as long as you are good at dealing with technology, you can trust its services."

On the other hand, Lagarde warned of some risks to electronic currencies of financial integrity and financial stability, where she believes that digital currencies can exacerbate pressure on bank deposits.

Central bank monetary policymakers from Uruguay and Canada are already looking into the idea, and the central bank governor said last month that he would try next year to launch a pilot project to develop e-currencies.
Economies around the world are becoming less reliant on cashed for pay and credit cards or even mobile applications as a means of payment.

A Bloomberg study last month revealed that central banks could eventually destroy the value of the Pitcairn and other electronic

currencies by issuing their own currencies

  • Thanks 1
  • Upvote 1
Link to comment
Share on other sites

Central banks should consider issuing digital money, IMF's Lagarde says

  • IMF Managing Director Christine Lagarde said central banks should "consider the possibility to issue digital currency" in a speech in Singapore on Wednesday.
  • Lagarde said the nature of money is changing as demand for cash decreases around the world.
  • Central banks and financial institutions could partner to address the risks of digital currencies, Lagarde said.
Published 7:18 AM ET Wed, 14 Nov 2018  Updated 8:12 PM ET Wed, 14 Nov 2018CNBC.com
     
     
     
     
     
     
104795101-GettyImages-860542876.530x298.
Chris Somodevilla | Getty Images

Central banks should consider issuing digital currencies as money faces a "historic turning point," according to IMF Managing Director Christine Lagarde.

In a speech at the Singapore Fintech Festival on Wednesday, Lagarde highlighted the changing nature of money as demand for physical cash decreases around the world. She said central banks have a role supplying money to the digital economy.

"I believe that we should consider the possibility to issue digital currency," Lagarde said.

 

Lagarde said a central bank-backed digital currency could help promote financial inclusion, security, and privacy in payments as a low-cost and efficient alternative to paper notes. But she also warned of risks to financial stability and innovation.

"My message is that while the case for digital currency is not universal, we should investigate it further, seriously, carefully, and creatively," Lagarde said.

Central banks around the world are weighing how the rise of non-cash payments affects their conventional role printing bank notes and managing money supply. Lagarde singled out central banks in China, Canada, Sweden and Uruguay that are "embracing change and new thinking" about how they might supply digital currencies to the public.

For example, Sweden's central bank, the Riksbank, is planning to pilot a version of a digital currency called e-krona in 2019. Sweden is considered to be one of the most cashless societies in the world with just 13 percent of Swedes using cash for their most recent purchase in a shop, according to a recent survey from the Riksbank.

Central bank-backed digital money

Deposits held in commercial banks are already digital, but a digital currency might be backed by the government in the same way cash is today, Lagarde said. Digital currencies could come in the form a state-backed token, or through an account held directly at the central bank.

Cryptocurrencies like bitcoin, on the other hand, offer a "decentralized" option, meaning they are not controlled by a central authority. Lagarde said she is "not entirely convinced" about cryptocurrencies that are anchored in "trust in the technology."

"Proper regulation of these entities will remain a pillar of trust," she said.

'Immediate, safe, cheap and semi-anonymous'

To promote competition in the financial services industry, Lagarde said central banks could partner with the private sector. Banks and financial institutions could manage a customer's holdings while governments make the digital transactions, she said. This arrangement would continue to encourage innovation among banks and start-ups while allowing central banks to focus on their advantage of "back-end settlement."

"The advantage is clear," Lagarde said. "Your payment would be immediate, safe, cheap, and semi-anonymous."

The IMF released a new paper on Wednesday weighing the case for a central bank-backed digital currencies. It found it is too early to draw conclusions on the net benefits as every country faces unique circumstances around cash usage and e-money adoption. Lagarde said policymakers need to be open-minded about changes in the financial landscape.

"Technology will change, will change us, so we should change as well," she said.

 
 
  • Thanks 2
  • Upvote 1
Link to comment
Share on other sites

LMAO!!! Iraq can't even issue a paper currency that's worth anything an she wants them to issue a digital one...now that is funny. I'm sure the corrupt politicians in Iraq like Maliki would love to have another way to steal the countries money, hey the auctions might stop one day is their thinking.  

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.


  • Testing the Rocker Badge!

  • Live Exchange Rate

×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.