The Deputy head of the Department of monetary and financial markets the International monetary Fund, Dong Hae published may 31, an article entitled “Monetary policy in the digital age” with the subtitle “Cryptocurrency could one day lead to a reduction in the demand for money of Central banks”. The author argues that Central banks should adopt some peculiar digital currency concepts, to “prevent competitive pressure, which scriptactive can have on Fiat currency.”
This statement resonates with those previously did as he himself, and the Director of the IMF Christine Lagarde. In March, Lagarde said that the regulators should adopt new technologies to “fight fire with fire”.
In his latest article Ho writes that in the case of a widespread cryptocurrency and scriptactive Central banks risk losing influence on the economy through such methods as changing the interest rate.
Deputy Director of the IMF believes that stricter regulation can improve the efficiency of the Central banks. In particular, he writes:
The authorities should regulate the use of scriptaction to prevent regulatory arbitrage and to deprive cryptocurrency any unfair competitive advantages that could derive from liberal legislation. Under the regulation refers to the strict implementation of measures aimed at the prevention of money laundering and the financing of terrorism, strengthening the protection of consumers and ensuring effective taxation cryptalgname sector.
In addition, he suggested that the Central banks can create your own digital assets:
For example, Central banks could reach out to users in the digital world, producing digital tokens that will be complementary in relation to cash and Bank reserves. This digital currency could be exchanged for p2p-based, decentralized manner, much like scriptactive.
This idea is studied by many Central banks, and the potential effectiveness of such a scheme is estimated differently. For example, this week the official of Management of monetary circulation of Hong Kong (de facto Central Bank) said that the Agency does not plan to launch digital currency, while exploring the prospects of such a model.