One of the quickest turnaround comes when a global financial institution states something uncharitable about cryptocurrency and the next moment, they announce their own cryptocurrency.
The International Monetary Funds (IMF) and the World Bank are reportedly introducing their own cryptocurrency. This news was first published by the Financial Times. The news portal reported that the IMF and World Bank launched the “Learning Coin” to study the technologies that underlie the cryptocurrencies. The coin will be used only within the IMF and the World Bank and has no money.
The portal reportedly quoted the IMF as saying, “The development of crypto-assets and distributed ledger technology is evolving rapidly, as is the amount of information (both neutral and vested) surrounding it. This is forcing central banks, regulators and financial institutions to recognize a growing knowledge gap between the legislators, policymakers, economists and the technology.”
The launch of the coin and a private blockchain will help both the institutions to understand the technology surrounding cryptocurrencies and other elements such as smart contracts, among others.
While, in the past IMF has largely been cautious about cryptocurrencies, leaning on the side of bearish, its chief, until recently, was quite supportive and enthusiastic. However, last week, Christine Lagarde, the chief of IMF had said, “I think the role of the disruptors and anything that is using distributed ledger technology, whether you call it crypto, assets, currencies, or whatever … that is clearly shaking the system.”
She had added that it was necessary to monitor the ‘disruptions’ in an effort to maintain stability. Lagarde said, “We don’t want innovation that would shake the system so much that we would lose the stability that is needed.”
IMF, for its part had said that cryptocurrencies cannot fulfill the basic functions of money, as earlier reported by Crypto-News India. It had said, “Despite the hype, cryptocurrencies still don’t fulfill the basic functions of money as a store of value, means of exchange, and unit of account. Because their value is highly volatile, they have little use so far as a unit of account or a store of value. Limited acceptance for payment restricts their use as a medium of exchange. Unlike with fiat money, the cost of producing many cryptocurrencies is high, reflecting the large amount of energy needed to power the computers that solve the cryptographic puzzles.”
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