A digital name issued by a central bank can help increase financial inclusion and security of payments.
18 Nov 2018 at 17:39 TASR
Singapore. Central banks need to think about the issue of digital currencies, because at the time when money is changed, Christine Lagard, the head of the International Monetary Fund (IMF), said.
Lagarde spoke on Wednesday (November 14th) with a speech at the Singapore Fintech Festival.
Variability of money
She highlighted the volatile nature of money and pointed out that demand for cash around the world is now falling. According to him, the central banks play the role of giving money to the digital economy.
"I think we should consider the possibility of broadcasting a digital currency," Lagarde said.
A digital currency issued by a central bank can help increase financial inclusion and ensure payment as a cheap and efficient alternative to cash.
Lagarde, however, also warned of the risks associated with the crypts. "I just want to say that even if the arguments for cryptomain support are not universal, they should be carefully and carefully examined creatively."
Increase of non-cash payments
Centralized banks around the world are exploring that an increase in non-cash payments will affect their traditional role of money suppression and money management.
Lagarde warned that the central banks of China, Canada, Sweden and Uruguay take over this change and are trying to think about how to offer digital currency to the public.
For example, the Swedish central bank (Riksbank) plans to launch the pilot version of the digital e-crown 2019.
Sweden is one of the countries in which cash is minimally used. According to the latest research, Riksbank uses only 13% of Swedish buyers in the store.
Deposits in commercial banks are already digital, but the crypt can be covered by the government, as it is currently cash, Lagarde said.
Digital currencies may appear in the form of government currencies or through direct debit in a central bank.
Hidden as bitkoin and others, on the contrary, offer a decentralized alternative, which means that they are not controlled by any central authority.
Lagarde said that the crypts entrusted to trust in technology did not fully convince her. "Adequate regulation remains a pillar of trust," the IMF chief said.