Crypto Exchange Crypto Exchange
Ctrl+D Crypto Exchange
Home > Uniswap > Info

The IMF calls for faster cross-border payment reforms.What role will digital currencies play?



Global central bank digital currency research and development is in full swing.

On October 19, local time, in the "Cross-border Payment Transactions: Looking to the Future" session of the International Monetary Fund (IMF) annual meeting, IMF President Georgieva said that the digital currency (CBDC) issued by the central bank may Increase the pressure of "currency substitution", that is, foreign currency is used domestically instead of domestic currency.

On the same day, Georgieva also published a joint blog "A Leap Forward on Cross-Border Payments" (A Leap Forward on Cross-Border Payments) with Tobias Adrian, Director of the IMF's Monetary and Capital Market Department.

The article pointed out that as of now, the improvement of cross-border payment has been very slow, but the reform is about to start. The emergence of new technologies and the support of decision-making in various countries have made great progress possible; at the same time, the public and enterprises hope to get better services.

The IMF calls on all countries to work together to reform the current cross-border payment system to make the cross-border payment system cheaper, more transparent and usable. But at the same time, the IMF also pointed out that the risks are quite high. The reform of cross-border payments will affect the global monetary system, and have an impact on financial inclusion, trade efficiency and financial markets. However, the IMF emphasized that reforms will lead to innovation and economic growth, especially in the face of the crisis brought about by the new crown epidemic. Only by strengthening global cooperation can the future leapfrog progress of cross-border payments become possible.

IMF report: 50% of the deposit liquidity in the DeFi lending market is provided by less than 10 accounts: Golden Finance News, the International Monetary Fund (IMF) released a global financial stability report, which involved the DeFi lending market, saying that the liquidity of the DeFi lending market Supply is highly concentrated and less decentralized than expected, with half of all deposits on average provided by fewer than 10 accounts, with more concentrated in smaller, more volatile cryptoassets. With increased concentration, any idiosyncratic withdrawal of funds by a large depositor can have a significant impact on the liquidity position of the platform, which in turn can exacerbate liquidity drying up. [2022/4/26 5:12:11]

On the evening of October 14, Saudi Arabia, the presidency of the Group of Twenty (G20), hosted a video conference of G20 finance ministers and central bank governors. The meeting approved the "G20 Roadmap on Strengthening Cross-Border Payments" to improve global cross-border payment arrangements efficiency and transparency. The meeting welcomed reports from relevant international organizations on the benefits and risks of global stablecoins, saying that global stablecoin projects should fully meet all relevant legal and regulatory requirements before launching. The meeting affirmed the importance of developing sustainable finance and inclusive finance to promote global economic growth and stability.

Former IMF Vice President Zhu Min: Central Bank Digital Currency Can Directly Provide Credit Guarantee, Liquidity and Cash for Individuals and Companies Zhu Min, President of the National Institute of Financial Research and former Vice President of the International Monetary Fund, and Chen Long, Secretary-General of Luohantang, discussed how to help small and medium-sized enterprises and ensure stable employment.

When talking about how to transmit government policies to small and medium-sized enterprises, all three scholars agree that digital technology will play an important role. Vulnerable groups represented by small and medium-sized enterprises have always had difficulty obtaining financial services. Under the epidemic situation, they need to break through traditional innovation. Zhu Min said that the central bank's digital currency is an opportunity to establish a new transmission mechanism, which can directly provide credit guarantees, liquidity and cash for individuals and enterprises. The outbreak could spur central banks to act faster. (Economic Reference Network)[2020/4/28]

The IMF emphasized that this is not just a report, but a concrete reform framework that provides a clear path for future development and, if implemented, the reforms will significantly improve the cross-border payment system.

Voice | IMF Chairman: BTC, ETH and XRP are vying for a place in the cashless world: According to ambcrypto, Christine Lagarde, Chairman of the International Monetary Fund (IMF), said during the Singapore Fintech Festival that people's demand for cash is decreasing. Cryptocurrencies like BTC, ETH, and XRP are also vying for a piece of the cashless world, constantly reinvesting in hopes of providing more stable value and faster and cheaper settlements. [2018/11/15]

In terms of digital currency increasing the pressure of "currency substitution", the IMF stated that currency substitution may weaken the authorities' control of domestic liquidity, reduce the stability of currency demand, and may further weaken the influence of monetary policy.

Global attention to digital currencies has intensified after Facebook plans to launch Libra for its users. Georgieva said in a group discussion that the launch of the Libra program has significantly accelerated the development of global central bank digital currencies.

The Federal Reserve, which had been "cold" about this before, has also changed.

News | IMF: Strengthening the investment and construction of the cryptocurrency industry will reduce the risk to the global financial industry: According to CCN, the cryptocurrency industry and infrastructure used by exchanges are relatively new and fundamentally different from the technologies used in the traditional financial sector. The IMF and government agencies have thus rightly described the rapid growth of this asset class as a risk to global finance. Continuously strengthening the infrastructure of the cryptocurrency market and strengthening investor protection will reduce the risk of cryptocurrency to the global financial industry. Renowned Cornell University professor Emin Gun Sirer, a respected expert on cryptocurrencies and blockchain, said the IMF’s recognition of cryptocurrencies as an asset class is positive for the industry. [2018/10/15]

Federal Reserve Chairman Powell said in a panel discussion that the Federal Reserve is committed to prudently, conscientiously and comprehensively assessing the potential costs and benefits of central bank digital currency (CBDC) to the US economy and payment system. The Federal Reserve has not yet made a decision to issue a digital currency because further research work is needed.

Powell emphasized that, given the importance of the U.S. dollar, in the development of any cross-border digital currency, it is more important for the U.S. to “do it than to be first. Doing it right means we look not only at the potential benefits of a CBDC, but also at the potential benefits of a CBDC.” not only recognize its potential risks, but also recognize the important trade-offs that must be carefully considered.”

Voice | IMF Executive Director: The rapid development of digital currency poses a challenge to the world's financial system: According to NewsBTC, IMF Executive Director Christine Lagarde said that the world is on the verge of another financial crisis, brought about by the accelerated development of financial technology such as digital currency Increased cybersecurity risks remind us that a permanent revolution in the financial system requires vigilant regulators. [2018/10/4]

Powell added that central bank digital currencies can only serve as a complement, not a substitute. Most importantly, the Fed assesses what impact a CBDC might have on a range of key issues, including monetary policy, financial stability, cybersecurity, and prevention of illicit activity.

Powell introduced that the Federal Reserve has a lot of exchanges with industry institutions on this, which is very helpful for digital currencies and cross-border payments. Powell also said private-sector startups like Facebook's Libra have accelerated the process of central banks launching digital currencies. The Fed is open to working with the private sector on digital currencies. However, Powell also reiterated that the Fed has not yet made a decision on the issuance of digital currency.

This is Powell's first positive statement on digital currency, and it also means that the Federal Reserve's cautious stance on digital currency has clearly shifted - recognizing the urgency of developing central bank digital currency and willing to comprehensively assess whether digital currency is suitable for the United States.

“About 80% of the world’s central banks are exploring this idea,” Powell said. “CBDCs could potentially improve payment systems in a number of ways, and it’s this area that primarily sparks our interest.”

Agustín Carstens, President of the Bank for International Settlements (BIS), known as the "central bank of central banks", said in this panel discussion that the BIS Innovation Center is committed to becoming the core of cooperation among central banks of various countries and becoming the core of the blockchain industry. Catalyst for technological innovations such as blockchain and central bank currency digital currency.

On October 9, BIS and seven central banks including the Federal Reserve issued a report: "Central Bank Digital Currency: Fundamental Principles and Core Features". According to the report, 80% of the countries in the world have entered the stage of digital currency research and development, pilot and implementation. Recently, the digital currency "race" has become more and more lively, and more and more countries have entered the internal pilot period.

In January this year, the Bank of Japan, the European Central Bank, and the Bank of England established a central bank digital currency team to jointly assess the possibility of CBDC. The panel also included the Bank of Canada, the Swiss National Bank, the Riksbank and the Bank for International Settlements. The group will assess issues such as scenarios where CBDC can be applied, cross-border operations and other technical design issues, and will work closely with the Financial Stability Board and the Committee on Payments and Market Infrastructures (Committee on Payments and Market Infrastructures). The group will be chaired by European Central Bank executive member Cole (Benoit Coere), the BIS Innovation Center, the deputy governor of the Bank of England, and the chairman of CPMI.

In November 2019, BIS appointed Benoît Cœuré, who is about to retire as a member of the Executive Committee of the European Central Bank, as the head of the BIS Innovation Center to preside over the institution's digital currency research and development.

This year, the Federal Reserve’s attitude towards digital currencies has also shifted. Federal Reserve Governor Brainard said in a speech in August that the Fed has also joined in cooperation with other central banks and BIS.

The theme report "Central Bank Digital Currency: Fundamental Principles and Core Features" released last week was jointly prepared by BIS and 7 central banks (Bank of Canada, Bank of England, Bank of Japan, European Central Bank, Federal Reserve, Riksbank, Swiss National Bank) , which clarified three basic principles necessary for a publicly issued CDBC to help the central bank achieve its public policy goals: 1) coexist with cash and other types of money in a flexible and innovative payment system; 2) support broader policy goals, and not Compromising monetary and financial stability; 3) functions should promote innovation and efficiency.

The 26-page report outlines the "fundamental principles and core features" of a CBDC. These central banks did not agree on whether to issue a CDBC, but they outlined common principles and main features of a CBDC "needed to contribute to the central bank's public policy objectives". As for the core functions of a CBDC, these include ease of use, low cost, convertibility, and continuous availability.

The report said that the decline in the use of cash payments and the growth of digital payments was "huge", and that these central banks and the BIS therefore argued that CBDCs could be an "important means for central banks to continue to provide security services in the wider digital life" ". The report states that central banks will continue to cooperate on CBDC, but will not make any premature judgments on whether to launch CBDC in their jurisdictions.

In the report, BIS also urged countries to conduct an in-depth analysis of the impact of digital currencies on monetary policy and financial stability when used in cross-border transactions. Large holdings of another country's digital currency by one country could lead to stronger, unintended international spillovers, the report said. Specifically, it includes: violent exchange rate fluctuations, "digital dollarization" in other countries, promotion of tax avoidance, and weakening of supervision by domestic authorities. Therefore, under the above potential risks and challenges, more research on cross-border digital currency transactions is needed to ensure the security of currency transactions while improving efficiency.


NFT is emerging, but how far is it from the public?

NFT has followed the trend of DeFi, but it still has a lot of time to go out of the circle. There may be certain misunderstandings and limitations in the market segments currently being explored.What exactly is the NF.

5 must-reads in the evening | Blockchain and Bitcoin in the eyes of the richest man Jack Ma

1. Blockchain and Bitcoin in the eyes of the richest man Jack MaFrom October 23rd to 25th, 2020.

Blockchain and Bitcoin in the eyes of the richest man Jack Ma

From October 23rd to 25th, 2020, the second Bund Financial Summit with the theme of "Crisis and Opportunity: New Finance and New Economy under the New Pattern" was held in Shanghai. Jack Ma attended and delivered a sp.

The IMF calls for faster cross-border payment reforms.What role will digital currencies play?

Global central bank digital currency research and development is in full swing.On October 19, local time.

Dai is now 60% backed by centralized assets What does this mean?

Crypto Twitter has been buzzing about Maker’s collateral status for the past few days.Some users pointed out that 40% of all Maker collateral is now IOUs – meaning that instead of digital commodities like ether (ETH).

Bitcoin reproduces the last buy signal before the 2017 bull run

Over the past few months, Bitcoin has experienced a strong rally. Since its lows in March this year, Bitcoin has risen more than 300%, from $3,500 to $11.

Breakthrough of PoS public chain: deep combination of DeFi and Staking

With the recent popularity of DeFi, the transaction fees of Ethereum have risen sharply, and various DeFi projects based on Ethereum have caused the entire network to be congested. In contrast.