The International Monetary Fund released published a blog post that explores what digital currency is and the potential benefits it could provide. The international body also released a video explaining how digital currencies can provide many benefits to the current banking and finance system as well as any record-keeping industry. The IMF noted that digital currency transactions remove the need for a trusted central agent (trusted third party), reducing the cost of transactions. The digital currency transactions also remove the need to trust the central agent to protect our data and personal identification information and reduces transaction settlement time.
— IMF (@IMFNews) August 23, 2020
“The digital currencies might be the next evolution of money.”
The video released by the IMF went on to say that digital currencies might be the next evolution of money. The video explained how digital currencies are one of the best record-keeping solutions as transactions stored on the digital ledger are nearly impossible to alter, making a blockchain a good fit for any industry that needs a permanent, tamper-proof record. The IMF’s video and blog post help the blockchain and digital currency industry as it gives more legitimacy to the crypto space. It also helped in giving more exposure to the crypto industry.
Central banks continue to explore CBDCs across countries.
According to a report by the Bank for International Settlements, the interest of central banks in CBDCs has increased by a lot this year. The report states that attitudes about whether central banks should issue CBDCs have changed noticeably over the past year. The BIS data also revealed that in 2020, worldwide internet searches for CBDCs surpassed searches for Bitcoin (BTC) and Facebook’s Libra. China is all set to become the world’s first major nation to issue a national digital currency. The People’s Bank of China is currently testing the digital currency in several cities and plans to issue it to the general public pretty soon.