The mass adoption of crypto and the blockchain has been one of the most important issues in the crypto space, and it’s still going great. This has been happening despite the massive volatility that we are seeing in the crypto markets.
IMF addresses crypto and central banks
Accoridng to the latest reports, the International Monetary Fund (IMF) says that collaboration between central banks and crypto technology could create an innovative and efficient monetary ecosystem.
In a new report written by executives from the Bank for International Settlements (BIS), the IMF said that the technology behind digital assets and the trust that the public has in central banks together could set the stage for the monetary policy of the future.
“We argue that the monetary system of the future should harness the new technical capabilities demonstrated by crypto but be grounded in the trust central banks provide (BIS 2022).”
The same report reveals the following:
“In other words, any legitimate transaction that can be carried out with crypto can be accomplished better with central bank money. Central bank digital currencies (CBDCs) and other public infrastructure can underpin a rich and diverse monetary ecosystem that supports innovation in the public interest.”
According to the IMF, while the technology behind cryptos is noteworthy, the industry has many flaws. The entity addresses flaws such as extreme price volatility and lack of regulations and scalability.
The IMF made sure to highlight that central banks can help solve these issues.
“Crypto is neither stable nor efficient. It is a largely unregulated sector, and its participants are not accountable to society. Frequent fraud, theft, and scams have raised serious concerns about market integrity.”
Make sure to check out the complete details in the original report.
Now, the crypto market is struggling to recover following recent losses.