The Deputy Director of the Department of monetary and foreign exchange markets, the IMF , Dong Hae (Dong He) believes that Central banks should offer improved Fiat currency to fend off competition from cryptocurrencies.
Their proposal, the official stated in the article “Monetary policy in the digital age”.
“Scriptactive one day can reduce the demand for Central Bank money”, — he wrote in its subtitle.
According to Dong Hae, regulators should consider some apply to Vietnam money technology “to prevent competitive pressure scriptactive”. It is noteworthy that earlier a similar idea was expressed by the head of the IMF Christine Lagarde (Christine Lagarde). She encouraged to use blockchain technology to combat the dangers of cryptocurrencies is to “fight fire with fire.”
The need for action Dong Hae argued losing the Central banks ability to influence the economy by their decisions, for example, on interest rates, due to widespread adoption and diffusion of cryptocurrencies.
One of the necessary solutions, he called the tightening of regulation of scriptaction, especially in the area of prevention of money laundering and financing of terrorism. In addition, in his opinion, necessary to ensure the protection of investors and effective taxation of cryptocurrency transactions.
He also pointed out the ability of Central banks to issue their own digital assets, which can communicate peer-to-peer trade:
“For example, you can make Central Bank money light for use in the digital world by releasing its own digital tokens in addition to physical cash and Bank reserves. This digital currency from the Central Bank (CBDC) could share in a decentralized p2p way, as scriptactive”.
This idea of an IMF official, a number of Central banks already considering seriously. However, its efficacy sure, not all analysts of the Bank for international settlements (BIS) indicated that the implementation of the CBDC can carry serious fundamental risks. The ECB Executive Board member Benoit coeure (Benoît Cœuré) said that CBDC did not show unquestionable advantages in comparison with existing means of payment. On the eve of the same opinion was expressed by the Central Bank of Hong Kong.