IMF tentatively accept cryptocurrencies

The International Monetary Fund (IMF) have asked central banks to explore central bank digital currencies (CBDC) but with caution.

In a recent blog post, the IMF stated 

“Some central banks are concerned by the increasing concentration of the payment system in the hands of few very large companies (some of which are foreign). In this context, some central banks view CBDC as a means to enhance the resilience of their payment system.”    

The Washington based organisation has been speaking to banks about the threat that digital currencies pose for a while. It seems the introduction of stablecoins and the prospect of Libra have accelerated the process.

They do however highlight some risks: one of the most prominent are risks to the banking systems within countries is the fact that “Deposits could be withdrawn from commercial banks, should people decide to hold CBDC in significant volume.”.

Either way, it seems like the central banks are already moving forward with this as China and Europe leading the way.