The International Monetary Fund (IMF) plans to “step up” its monitoring of digital currencies, according to a report by Reuters. That intention, published in an IMF paper on Thursday, describes how the fund plans to manage “this far-reaching and complex transition” to a digitized economy.
“Rapid technological innovation heralds a new era of public and private digital money,” the report said, highlighting the benefits of digital assets. “Payments are becoming easier, faster, cheaper, more accessible and will quickly cross borders. These improvements could promote efficiency and integration, with great benefits for everyone. “
Related: The IMF is planning a meeting with the President of El Salvador to possibly discuss the move to introduce Bitcoin
However, such implementations can only happen if the IMF can “keep pace with policy challenges” that require deeper insight into the digital economy as a perspective. The fund plans to work “in line with its mandate” with institutions such as central banks, regulators and the World Bank, while expanding its own digital money research.
As announced in an April 2021 paper, the IMF plans to add five expert groups to properly conduct the research. Her competencies include lawyers, digital risk experts, financial sector experts, tax economists and data specialists. Those skills should thoroughly cover research into the digital currency industry, the newspaper said.
The fund will target central bank or CBDC digital currencies, stablecoins, cryptoassets and more. It examines how these assets can represent financial independence, act as reserve currencies and replace current payment systems.
Related: Steve Hanke warns that BTC could “completely collapse” El Salvador’s economy
Earlier this week, the IMF issued a warning regarding El Salvador’s latest Bitcoin law. While not directly mentioning the country, the warning noted that “making crypto assets legal tender” could threaten the local economy, let alone citizens’ time-consuming process of “what money to hold”. Conversely, the IMF put on record earlier this month that CBDCs could provide a “clean slate” for the global financial system.