IMF recommends CBDC and global encryption standards to ensure financial stability


The International Monetary Fund (IMF) has issued a set of operational policies for emerging markets and developing economies to ensure financial stability in the context of the global adoption of cryptocurrencies.

The International Monetary Fund believes in the potential of crypto assets as a faster and cheaper cross-border payment tool, on the grounds that despite the dramatic increase in the value of the crypto market The bearish trend since May 2021. this report Consider high returns, transaction costs and speed, and reduced anti-money laundering (AML) standards as the main drivers for the adoption of cryptocurrencies.

In order to cope with the financial stability challenges brought about by the increase in the trading of encrypted assets, the IMF recommends:

“Policy makers should implement global standards for encrypted assets and strengthen their ability to monitor the crypto ecosystem by addressing data gaps. Emerging markets facing crypto risks should strengthen macroeconomic policies and consider the benefits of issuing central bank digital currencies.”

The IMF report shows that the valuation of the cryptocurrency market has exceeded that of Bitcoin (Bitcoin) And the dramatic increase in stablecoin products. IMF data for three years shows that the risk-adjusted returns of non-stable currency crypto assets such as Bitcoin are comparable to other mainstream benchmark indexes such as the Standard & Poor’s 500, as shown in the figure below:

In addition to the issuance of China Development Bank, the IMF further recommends “appropriate supervision of risks and consistent with the supervision of global stablecoins”. In addition to the implementation of CBDC, the de-dollarization policy will help the government deal with macro financial risks.

related: The International Monetary Fund intends to “strengthen” digital currency surveillance

As early as July 2021, Cointelegraph reported that the IMF plans to “strengthen” the monitoring of digital currencies. An old IMF report emphasized the benefits of digital assets, which read: “Payments will become easier, faster, cheaper, and more accessible, and will quickly cross national borders. These improvements can promote efficiency and inclusiveness, Great benefits for everyone.”

The IMF also planned to meet with El Salvador’s President Nayib Bukele (Nayib Bukele) to discuss its impact and Possibility of mainstream Bitcoin adoption.