IMF sees critical role in global shift to digital currency

“The IMF has a critical role to play in helping its members reap the benefits and manage the risks of digital currency,” the IMF said.

Importantly, digital currency “must be regulated, designed and delivered for countries to maintain control over monetary policy, financial conditions, capital account opening and exchange rate regimes.”

The paper distinguishes between central bank digital currencies, stablecoins and electronic money, which it focuses on, and crypto assets that include bitcoin.

“Although different types of digital currency are considered, this document does not say which form may predominate.”

The document, dated March, discussed by the IMF’s board in April and released Thursday, provides an overview of the Fund’s development and how it seeks to partner with other organizations such as the central banks, regulators and the World Bank.

“The Fund must rapidly strengthen, expand and deepen its well-established work on digital currency, while coordinating and collaborating closely with other institutions within its mandate. The Fund must also rapidly increase its resources dedicated to these issues, ”he said. the body.

In a separate blog post earlier this week, the head of the IMF’s Monetary and Capital Markets Department and the head of its legal department said any attempt to use crypto assets as national currencies would be risky.

The benefits “including the potential for cheaper and more inclusive financial services should not be overlooked,” they said.

“Governments, however, need to scale up the provision of these services and take advantage of new forms of digital currency while preserving stability, efficiency, equity and environmental sustainability. Trying to convert crypto assets into national currency is a bad shortcut, ”he said.