Digital names issued by central banks can help improve financial inclusion and deposit payments.
TASR on November 18, 2018 at 17:39
Singapore. Christine Lagard, head of the International Monetary Fund (IMF), thinks central banks should think about the digital currency issue when the money is changing.
Wednesday (November 14) Lagarda addressed the Singapore Fintech Festival.
She emphasized the volatility of the money and pointed out that global cash demand is declining. The central bank plays a role in providing money to the digital economy.
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"I think we should consider the possibility of issuing digital currencies," Lagarde said.
Digital currencies issued by central banks help increase financial inclusion and ensure payment is made as an inexpensive and effective alternative to paper currency.
But Lagarda also warned about the risks associated with passwords. "I would like to say that the cryptomain claim is not universal, but it should be reviewed seriously, carefully and creatively."
Increase in non-cash payments
Central banks around the world are exploring how the increase in cashless payments affects their traditional role in pushing money and managing money supply.
Lagarda warned that central banks in China, Canada, Sweden and Uruguay are considering ways to take the change and provide digital calls to the public.
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For example, the Swedish central bank (Riksbank) plans to launch a pilot version of e-kron digital currency in 2019.
Sweden is one of the countries with the least amount of cash. According to the latest survey, Riksbank purchases only 13% of the stores in Sweden.
Deposits in commercial banks are already digital, but cash can now be covered by the government in cash, Lagarde said.
Digital currencies can be provided in the form of state-owned currencies or through accounts held directly by the central bank.
Conversely, if you hide it with a bitcoin, you provide a decent replacement. It is not controlled by central power.
Lagarde said the pessimist, convinced of the technology, did not fully convince her. The IMF pointed out that "adequate regulation remains a pillar of trust."