IMF: Crypto Currency Can Be a Central Bank rival
Crypto currency technology that presents various digital solutions for various financial transactions, feared could threaten the role of the Central Bank. According to the Deputy Director of the Department of Stock Market and Finance at IMF, Dong He, banks should immediately take measurable steps to stay competitive with the ease with which crypto is offered.
he IMF considers Bitcoin and other crypto currencies as a formidable challenge to the dominant role of the Central Bank. Crypto even projected the currency could reduce the demand for money from the central bank (Fiat). In his report, Dong He added that the adoption of crypto in various fields could minimize the role of the central bank to influence the economy through its interest rate policy.
Bank Makes a Solution To Compete
As noted in Dong He's report from the IMF, the emergence of crypto currency and distributed ledger technology such as Blockchain can change the paradigm of global payment transactions. Banks must explore certain steps to remain competitive in the future, and compete with other currencies such as Bitcoin.
"For example, the Central Bank can spend money on a 'friendly' digital environment, such as their own edition of kripto tokens, to supplement their physical and backup assets, and the digital money output of the bank must have crypto characteristics as well," commentator Dong He.
To facilitate the realization of these ideals, the role of government and regulatory bodies is also indispensable. The discourse has also been emphasized by the IMF leaders. Christine Lagarde, who wants global cooperation and synergistic efforts between regulators and the Central Bank. The goal: to "fight fire with fire".
Crypto Still Has Many Problems
Although the threat began to be worried, crypto currency is actually still quite far from the word stabi. Until now, crypto currency has too many levels of risk and volatility that makes it still less promising. Moreover, the kirpto currency has been getting a bad stamp due to various cases of fraud, security breaches, and operational failures, resulting in a decrease in trust among the wider community. When the adoption of crypto is widespread, volatility can subside, and token publishing rules can be better, then crypto currency will have high competitiveness.