(IMF) The IMF says central banks face a dilemma on how to proceed in adoption of digital forms of money, warning that tough choices must be made.
IMF says policy makers face a challenge in clarifying the role of public and private sectors in the disruptive industry.
IMF warns that adopting crypto assets for the mere promise of faster and easy to access transactions exposes countries to macro-economic stability risk.
There are concerns that pricing of goods in both the real currency and the digital asset would subject businesses and individuals to time wastage in choosing the form of money to adopt.
IMF points to further risks of inability by central banks to determine interest rates on foreign currency, as well as exchange rate risk exposures which could destabilize domestic prices.
With limited internet and technology to transfer crypto assets in some countries, it could violate legal tender requirements of forms of payments being widely accessible.
Potential for wild swings in value of crypto assets, cyber-attacks, and impacts of mined assets to the environment are factors central banks must weigh in.
With superfluous risks associated with digital forms of money, IMF advises against making them national currencies.
IMF recommends central banks to leverage on the benefits brought by the underlying technologies of crypto assets and digital forms of money without exposing countries to associated risks.
BTCUSD is up +1.75%, ETHUSD is up +1.98%.
