Friday, July 10, 2020

IMF and World Bank Launches Crypto After Undermining Bitcoin

A twist of an event like the adoption of cryptocurrency by JP Morgan took place with two international financial organization. After undermining Bitcoin, IMF and world bank jointly launched a private blockchain and quasi-cryptocurrency, called “Learning Coin,” on Friday, April 12.

Learning Coin, A private Blockchain and Quasi cryptocurrency

The jointly launched crypto between the IMF and the world bank is tagged a quasi or supposed cryptocurrency. Unlike the Bitcoin and Ethereum, it has no monetary value, which makes it not exactly a real cryptocurrency. Instead of serving as a real cryptocurrency, it will function as a hub for knowledge where blockchain and crypto related content like blogs, research, videos, and presentation will be stored.

Also, the quasi cryptocurrency is created for the IMF and world bank staffs to earn after reaching a specific educational milestone. However, since the coins have no monetary or real value, the developers are still testing on how the staff can redeem their coins for some sort of reward. This will help the staff to learn first hand how these virtual coins can be used in real life.

Further, the learning coin app is not available to the public because it is just a prototype built to explore the technology. Anyone outside the IMF and the world bank cannot access it as stated by the organizations.

Meanwhile, The main reason for the launch of learning coin as revealed is to help the international institutions understand better the emerging technology of digital assets that are slowly but disrupting the financial industry.

The launch is a twist to the recent criticism of the blockchain and cryptocurrency market by the director of IMF. Christine Lagarde noted recently that cryptocurrency is shaking the banking sector and must be regulated and monitored carefully to avoid its disruptive impact on financial institutions.

Disruptive And Indispensable Tech

The recent adoption of the blockchain tech by the IMF and world bank indicates the inevitability of the tech despite undermining the tech.

There is a necessity to adopt blockchain because the complexities of the crypto and blockchain world have formed a growing knowledge gap between the legislators, policy makers, economists, and technology. Hence the need to bridge the gap and form a knowledge base of the tech among the parties.

Also, the IMF and the world bank might be interested in implementing the tech to launch smart contract, fight money laundering, and enhance the overall level of transparency in the near future.

Perhaps, the best way to regulate and monitor the crypto asset industry and its effect on financial institutions is by adopting it, like the IMF and World Bank have done. However, the crypto industry remains a force to reckon with, as is projected as successor of the banking system by its enthusiasts.

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