The International Monetary Fund, or IMF, plans to "step up" its monitoring of digital currencies, according to a report by Reuters. This intent, as published in an IMF paper Thursday, details how the fund plans to "manage this far-reaching and complex transition" toward a digitized economy.
The report states that rapid technological innovation is ushering into a new era in public and private digital money. It highlights the advantages of digital assets. Payments will be faster, more affordable, easier to make, and they will quickly cross borders. These improvements could promote efficiency and inclusion with great benefits for everyone.
But such implementations are only possible if the IMF is able to "keep pace with policy issues," which requires a deeper examination of digital economies as a prospect. The fund will continue to work with institutions that are consistent with its mandate, such as regulators and central banks, as well expanding its digital money research.
According to an April 2021 paper, five additional sets of experts will be added by the IMF to conduct proper research. They include digital risk specialists, financial sector experts and fiscal economists. This skill set should cover all aspects of research on the digital currency industry and paper claims.
The fund will be aimed at Central Bank Digital Currencies (or CBDCs), stablecoins and cryptoassets. The fund will investigate how these assets can be used as reserve currencies and financial independence.
Earlier this week, the IMF published a warning regarding El Salvador's recent Bitcoin law. While it didn't mention the country directly, the warning noted that "granting cryptoassets legal tender status" could threaten local economies, not to mention the time-consuming process of citizens "choosing which money to hold." Conversely, the IMF went on record earlier this month claiming that CBDCs could provide the global financial system with a "clean slate."