The International Monetary Fund (IMF) has once again given a green light to countries to embrace cryptocurrencies. This is after Kristalina Georgieva, head of IMF revealed the organization’s top priority goals for 2020. The IMF will help its member countries to keep pace with cryptocurrencies, bringing about a healthy global economy in 2020. Georgieva’s comments were made in a tweet on January 16, 2020.
Kristalina Georgieva Reveals the IMF’s Agenda for 2020
Per the tweet, Kristalina Georgieva revealed that the IMF has set a Working Program for the year 2020. One major reason is that the IMF will help its member countries keep pace with fast developments of digital assets.
Georgieva further outlined that the IMF’s policies for the year aim at benefiting its member countries and their citizens. And as such, these policies will promote a healthy global economy in 2020.
IMF Prioritizes Cryptocurrencies for 2020
It is interesting to note that digital currencies such as cryptocurrencies are part of the IMF’s agenda. It shows that the organization is looking into this asset class and its potential benefits to the world at large.
The official document which shows the IMF’s goals for the year reads:
“Contribute to improving the multilateral system and upgrading international cooperation to bring the benefits of integration to all: The Board will be briefed on Developments in Global Trade Policy and discuss Digital Currencies—Prospects and Cross-Border Implications.”
IMF Promotes Global Adoption of Digital Currencies
Over and above that, the IMF has been advising countries to adopt digital technology. For instance, Christine Lagarde, former IMF Chief recommended that central banks be “open to the opportunities provided by change,” and adopt new technologies including digital currencies since they provide wide social benefits. Similarly, the IMF stated that fiat currencies are in flux, and as such, innovation will bring about a transformation of the banking and money industry.
The IMF has also been advocating for fiat-backed cryptocurrencies, outlining that these currencies can reduce over-reliance on fiat currencies. Much more, crypto-asset transactions clear and settles faster compared to bank transfers, it said.
“New services using distributed ledger technology and crypto assets have slashed the time it takes for cross-border payments to reach their destination from days to seconds by bypassing correspondent banking networks,” the IMF wrote.
The organization also advised the Philippines to improve its collection of transaction data for crypto assets in conducting macroeconomic analysis on how cryptocurrencies are flowing in and out of the country. The Philippines is attracting several investors into this sector and “may become a vital market for crypto assets,” IMF says.