Crypto Twitter: IMF’s Twitter Poll On Digital Currency Goes Viral, What’s so Special?

Published January 15, 2021 | Updated January 15, 2021

IMF digital Currencies
Img Source: Council on Foreign Relations

Crypto Twitter: IMF’s Twitter Poll On Digital Currency Goes Viral, What’s so Special?

An interesting twitter poll titled, “Are Digital Currencies Real Money” regarding digital currencies posted by International Monetary Fund [IMF] has already received 75K votes and counting. Surprisingly, more than 80% of all the voters till now agree to this notion and believe Digital Currencies are actual Money.

IMFs Recent Digital Currency Report and Poll, What’s next?

The uncertain economic situation due to COVID19 pandemic has pushed many central banks and national governments to explore usage of digital currencies to stabilize the falling economies. IMF recently came with a report exploring scope for digital currencies in the international reserve ecosystem currently dominated by US Dollar.

IMF report on Digital Currencies
IMF report on Digital Currencies
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So, why IMF is after digital currencies? Here’s what we found can be possible reasons.

  • We live in a world where pandemics like COVID19 are plausible possibilities in future too, in these uncertain situations digital currencies can be an alternative whilst reconfiguration of international reserves ecosystem.
  • Will Digital Currencies reserves replace US Dollar? No, authors of the paper believe no it will not and even if digital currencies are adopted US dollar will retain its dominant status.
  • Paper also explores private digital currencies operated by private companies like FB Inc. which recently launched Diem. Authors believe such currencies can very co-exist as stablecoins along side CBDCs.

Key reasons cited while Libra’s launch that such currency can very well overwhelm currencies in smaller economies and as such Facebook modified the design and plans to launch multiple stablecoins backed by currencies of individual countries.

 

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Sunil Sharma 203 Articles
Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO's in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114 and reach out to him at sunil (at) coingape.com
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