An official speaker from International Monetary Fund (IMF) has made an announcement that fiat currencies have to become more attractive for the digital age we are living in right now. Deputy director of the same organization said that the stronger digitalization of fiat currencies has to be implemented, in order to be competitive with cryptocurrencies.

Primarily, the idea is to make fiat currencies more stable units of account.  IMF representative also said that the role collective expertise and experience play in monetary policymaking should be stressed. IMF’s managing director said that the best response to crypto by central banks is to continue running effective monetary policy, while being open to fresh ideas and new demands, as economies continue to develop.

What is more, the IMF is interested in heavy crypto regulation. Otherwise, crypto has many advantages to fiat, as an unregulated platform. That means rigorously applying measures to prevent money laundering and the financing of terrorism, strengthening consumer protection, and effectively taxing crypto transactions.

IMF’s speakers came to the conclusion that crypto markets should be regulated by the same laws as that apply to traditional markets. They argued that cryptocurrencies could threaten the stability of traditional financial markets, and that regulations must be developed on a global scale with their support.

Source:

https://cointelegraph.com/news/imf-official-calls-for-regulation-tech-adoption-by-banks-to-fight-crypto-competition