![\"Monetary](\"https:\/\/www.cryptocabaret.com\/wp-content\/uploads\/2020\/10\/monetary-stability-the-imf-and-fed-chair-jerome-powell-discuss-digital-currency-implications-768x432.jpg\")
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On Monday, the International Monetary Fund (IMF) published a report on crypto assets like central bank digital currencies (CBDCs) and global stablecoins (GSCs). Moreover, the IMF also hosted a virtual panel that discussed digital currencies and cross-border payments with the Federal Reserve Chair Jerome Powell. The Fed Chair says as far as a U.S.-issued CBDC is concerned, it is \u201cmore important to get it right than to be first.\u201d <\/strong><\/p>\n The IMF held a virtual panel that discussed digital currencies and cross-border payments on Monday morning. The panel was hosted by the IMF managing director in Washington, DC, Kristalina Georgieva<\/a>, and the Federal Reserve Chair Jerome Powell<\/a> participated. Reports note that Powell talked about the impact of a U.S.-issued CBDC and how it could affect financial stability.<\/p>\n \u201cWe do think it\u2019s more important to get it right than to be first and getting it right means that we not only look at the potential benefits of a CBDC, but also the potential risks,\u201d Powell said<\/a> during the panel discussion on Monday. \u201cAlso recognize the important trade-offs that have to be thought through carefully.\u201d<\/p>\n The report published by the IMF on the same day, also highlights that CBDC\u2019s could be beneficial, but may not cast a net over every monetary issue. For instance, CBDCs may not help if a local currency is a poor unit of account, the IMF report stresses. Further, a currency substitution \u201cdepends on the degree of monetary stability and other country circumstances, including legal frameworks and regulation.\u201d<\/p>\n The IMF\u2019s report details that the emergence of CBDCs and GSCs will require further analysis. The researchers say that countries that invoke a CBDC should also consider whether or not nonresidents should use their CBDC.<\/p>\n \u201cAuthorities will also need to assess whether restrictions on payments in CBDCs are consistent with countries\u2019 obligations under international and bilateral treaties, including the IMF\u2019s Articles of Agreement,\u201d the IMF report insists.<\/p>\n \u201cFor countries that adopt GSCs issued by Big Tech platforms, they will have a strong interest in ensuring that the GSC arrangement has robust governance and risk management,\u201d the IMF report further states. Still, the IMF researchers claim that even though there are unknown risks associated with crypto assets like GSCs and CBDCs, the pace of digital acceleration is constantly innovating.<\/p>\n The researchers continue by adding:<\/p>\n As the pace of digitalization accelerates, the landscape of international finance will likely be in a state of flux. Payments and financial services provision will likely become increasingly integrated with the digital economy organized through the internet and mobile phones.<\/strong><\/em><\/p>\n<\/blockquote>\n The IMF report called \u201cDigital Money Across Borders: Macro-Financial Implications\u201d shows the organization and policymakers like Powell are still leery about how to proceed with managing crypto assets. The study and virtual panel show government leaders are still very much in the dark when it comes to blockchain technology, and can\u2019t figure out how to regulate the industry.<\/p>\n Prior to the panel of policy-makers featuring Kristalina Georgieva and Jerome Powell, another panel was held by the IMF that conversed about the private sector lending a hand with CBDC and GSC tokens. The private sector panel included Celo CEO Rene Reinsberg, Mastercard senior VP Rory Macfarquhar, Ecurrency CEO Jonathan Dharmapalan, and Stellar CEO Denelle Dixon.<\/p>\n What do you think about the IMF\u2019s virtual panel and study concerning digital currencies? Let us know what you think about this subject in the comments section below.<\/strong><\/em><\/p>\n The post Monetary Stability: The IMF and Fed Chair Jerome Powell Discuss Digital Currency Implications<\/a> appeared first on Bitcoin News<\/a>.<\/p>\n![\"Monetary](\"https:\/\/www.cryptocabaret.com\/wp-content\/uploads\/2020\/10\/imf.jpg\" "\\"Monetary")
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