IMF Says Banks Are Feeling Pressure From Ripple (XRP), Bitcoin (BTC), Ethereum (ETH), Offers More Stable Value
The cryptocurrency in the finance industry has been calling for series of assertions from organizations, cooperate and regulatory bodies. Several bodies have been pouring in their sentiments about the future of fiat currency and the just introduced digital currencies.
An international organization working to foster global monetary cooperation, the International Monetary Fund (IMF), through its Managing Director, Christine Lagarde, gave a review on the evolution in a paper titled “Winds of Change: The Case for New Digital Currency.”
While discussing the changing nature of money and the revolution of the Finance industry, the managing director said the new forms of money are putting pressure on bank deposits.
“Think of the new specialized payment providers that offer e-money—from AliPay and WeChat in China, to PayTM in India, to M-Pesa in Kenya. These forms of money are designed with the digital economy in mind. They respond to what people demand, and what the economy requires”.
“Even cryptocurrencies such as Bitcoin, Ethereum, and Ripple are vying for a spot in the cashless world, constantly reinventing themselves in the hope of offering more stable value, and quicker, cheaper settlement,” she stated.
She added that digitalization is a new wind blowing in the finance industry. The new world has made it easy for people to meet anywhere, any time through smartphones, and we exchange information and services instantaneously peer to peer and person to person.
Lagarde averred that in spite of the growing concerns for privacy and cyber-security, data is the “new gold” of this century as we float through a world of information.
Millennial are revitalizing how the economy works and money is also changing to a more convenient and user-friendly means.
While referring to change as a constant thing in the society today, she said the change brought to money is expected to also graduate into integration with social media and of course made cheaper and more protected from the hands of criminals who prey on people’s wealth.
She concluded saying the goal of the 12 policy elements launched by IMF and World Bank in October is to “harness change so it is fair, safe, efficient, and dynamic.”
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