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IMF thinks about the release of international cryptocurrency

According to the Wall Street Journal, the world may soon receive international cryptocurrency in response to Bitcoin.

08.Oct.17 12:43 PM
By Daria Zaytseva


IMF thinks about the release of international cryptocurrency

This story is a response to the recent comments of the head of the International Monetary Fund (IMF) Christine Lagarde, encouraging banks and governments not to cut Bitcoin and other cryptocurrencies.

The news should not come as a surprise, after the recent announcement by the government of Dubai regarding its intention to issue state cryptocurrency. In addition, the latest news indicates that a large number of banks anonymously supporting state-issued coins, as the Blockchain advertising continues.

The difficulty with the global digital currency is a factor of centralization. The most important part of the appeal of cryptocurrencies, such as Bitcoin, is a decentralized protocol that creates a truly free market, on which value is based exclusively on consensus without fixing prices.

The globalized digital currency, while ensuring decentralized security, would require the IMF to correct and regulate values ​​to manage the flow of money in and out of different countries. Such a system would be contrary to Bitcoin's fundamental principles.

The dollar as a reserve currency for a significant volume of transactional volume in the world means that some large global economies may want to use the new digital currency as a reserve. The IMF coin could potentially replace the dollar in this context if it becomes widely accepted. In this case, the dollar and other national currencies would be limited to local markets.

Some Bitcoin’s supporters would argue that there is no need for such a currency from the IMF, since Bitcoin already exists and without the risks of centralization. The biggest obstacle would have been Lagarde and other economists taking and using Bitcoin globally, but the jury is still out.

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