The IMF has finally noticed the important benefits of crypto. True, so far only in stablecoins.
An IMF blog post notes the benefits of stablecoins such as low costs, global reach and speed as huge potential benefits of stablecoins. These “huge benefits of stablecoins give potential for better integration into our digital lives”.
Further it is more. The IMF states that by allowing by allowing seamless payments of blockchain-based assets, stablecoins can be embedded into digital applications, functioning significantly differently than the closed proprietary legacy systems of banks. Money as a form of language and as a means of expression makes stablecoins more attractive than traditional currencies with respect to their technical ability to be interwoven into social media platforms and mobile apps.
– The strongest attraction comes from the networks that promise to make transacting as easy as using social media. Payments are more than the mere act of transferring money. They are a fundamentally social experience linking people. Stablecoins offer the potential for better integration into our digital lives and are designed by firms that thrive on user-centric design. Large technology firms with enormous global user bases offer a ready-made network over which new payment services can quickly spread.
Obviously, the IMF report directly shills Facebook stablecoin Libra. But this does not look like a frank, bespoke publication, as the report also notes serious threats to existing finances:
- The destruction of banks as intermediaries.
- The danger of the emergence of new monopolies – developers of corporate cryptocurrencies.
- Destruction of weak fiat currencies.
- Easy illegal financing.
- Loss of seigniorage – income of central banks from the difference in the nominal value of the currency and the cost of its manufacturing.
However, this IMF report is an important step towards crypto. The International Monetary Fund (IMC) aims to promote international monetary co-operation, international trade, high employment, exchange-rate stability, sustainable economic growth, and making resources available to member countries in financial difficulty. Currently, the Fund has 189 member countries.