Thursday , March 4 2021

Central banks should take into account emissions of cryptomania

Central banks should consider the issue of digital currencies, as Christine Lagard, the head of the International Monetary Fund (IMF), is at the time when money is changing.

Lagarde spoke on Wednesday (November 14th) with a speech at the Singapore Fintech Festival. She stressed the instability of money and stressed that demand for money around the world is now decreasing. Central banks have, in his view, a role to give money to the digital economy.

"I think we should consider the possibility of broadcasting a digital currency," Lagarde said. A digital currency issued by a central bank can contribute to increasing financial inclusion and securing payments as a cheap and effective alternative to paper money.

However, Lagarda also warned of the risks associated with the crypts. "I just want to say that even though the arguments for cryptomain support are not universal, we need to examine them seriously, carefully and creatively."

Change the traditional task

Centralized banks around the world are exploring how the increase in non-cash payments will affect their traditional role of pushing money and managing money supply. Lagarde noted that the central banks of China, Canada, Sweden and Uruguay have captured this change and are striving to reflect on how to offer digital currency to the public.

For example, the Swedish central bank (Riksbank) plans to introduce a pilot version of the e-crown digital currency in 2019. Sweden is one of the countries where money is used at a minimum level. According to the latest survey, Riksbank uses only 13% of Swedes to buy in the store.

Deposits at commercial banks are already digital, but the crypt can also be covered by the government, as is currently the money, Lagarde said. Digital currencies may be in the form of government-owned currencies or through an account directly in a central bank.

Hidden as bitkoin and others, on the contrary, offer a decentralized alternative, which means that they are not controlled by any central authority. Lagarde said that crypts, anchored in trust in technology, were not completely convinced. "The appropriate arrangement remains the pillar of trust," he believes,

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