The International Monetary Fund (IMF) has made a remarkable prediction in a recently issued report. For example, the UN organization claims that central banks will issue cryptocurrencies worldwide.
The IMF report, which includes a survey held among 96 financial institutions, states that central banks are moving toward digital assets. Despite the fact that the IMF received divergent feedback regarding the development and future of cryptocurrencies, it was a common denominator that central banks will not only use fiat in the future, but also cryptocurrencies. The report includes the following:
About 20 percent of respondents claim to be exploring opportunities for digital asset issuance.
The report further describes that developments at central banks are in their infancy. Only the central banks in China, Sweden, Ukraine and Uruguay indicated that they wanted to start a pilot in the short term.
According to the report, there is mainly interest from cryptocurrency from central banks because of the low costs, the increased efficiency of monetary policy implementation, the prevention of competition under cryptocurrencies, making payments accessible and a risk-free payment product. The weakening interest of customers in cash would also play a role.
However, there are still obstacles that prevent central banks from issuing cryptocurrencies. These obstacles are mainly related to cyber security and data protection. No fewer than 97% of respondents indicate that these two factors hinder the financial sector.
What the common people think about central banks considering a cryptocurrency is not mentioned in the report.