Libra Hottest Topic at IMF Meeting – Individual Countries Tight-Lipped

By Steven Anderson October 20, 2019 0

The Finance Minister of India stated that lawmakers from other nations at the IMF meeting extended their caution when talking about cryptocurrencies.  She further stated Facebook’s Libra was one of the hottest topics at the annual IMF meeting.

The concerns about most of the nations related to cryptocurrency are centered around issues with terror funding and money laundering.

India is working on a concrete policy regarding cryptocurrency despite the current ban placed on trading and possessing cryptocurrency.  The Indian Finance Minister stated that they have already received several red flags from other nations regarding the consequences of using cryptocurrencies.

Cryptocurrencies come with several perks like the ease of use, cost savings, financial inclusion, and more.  However, they can bring in a lot of risks in terms of privacy.

Kristalina Georgieva, managing director of the IMF, recently stated, “We are not specifically focusing on Libra. We are looking into, one, the inevitability of expanding digital money on the wave of the digital revolution, but then the necessity to do so, mindful of monetary stability.”

The IMF is currently exploring the benefits and risks associated with cryptocurrencies in terms of terror funding and other illegal activities.  The IMF is partnering with the Financial Stability Board and the European Central Bank to explore the benefits of cryptocurrencies.

Officials at Bank of Canada are considering the development of a national cryptocurrency.  The interest in Central Bank Digital Currencies is on the rise, and this can eventually threaten the Bitcoin.

Mike Eppel stated, “The Bank of Canada wants to get ahead of the curve. They have this internal memo saying, yeah, eventually, they’re likely going to launch some crypto.”

There are continuing concerns around cryptocurrencies like inadequate regulatory framework and volatility.

Individual countries are tight-lipped, and central banks from across the world are looking to enter into the cryptocurrency space.

Nouriel Roubini, the Economist, previously proposed that central banks worldwide should issue their digital currencies to shut cryptocurrencies out.

If Central Banks ventured into the cryptocurrency industry, they would want to ensure that the tokens are centralized.  The authorities would legitimately prefer to track criminals and terrorists.  They would crackdown on the different attempts across the world to create cryptocurrencies in complete privacy.

Despite Bitcoin being the underdog, the Central Banks are not going to give up on their monopoly control on the monetary system, and they would prefer to fight to sustain their dominance.