A report published by the International Monetary Fund found that 15 different countries are considering joining the global fintech trend and adopting digital currencies as a payment method. In its report, the IMF identified two main reasons why they might make such a decision.
The report names 15 countries interested in introducing digital currencies, namely: The Bahamas, Canada, China, Central Bank of Curacao and Sint Maarten, Eastern Caribbean, Ecuador, Norway, Senegal, Sweden, Tunisia and Uruguay. An interesting fact is that interest in the cryptocurrency sphere is growing in proportion to the decrease in transaction volumes in the digital asset market.
It is expected that if private institutions begin to regularly use cryptocurrencies for making payments, central banks will also support this trend. For example, in Sweden, mobile payment apps have become very popular and the circulation of cash has declined so much that experts believe that within a few years no store or business will accept banknotes. Recently The Central Bank of Sweden announced that the state should offer an alternative to the private payments market.
Meanwhile, The People's Bank of Chinacontinues to work on its cryptocurrency project. This fall, bank officials published information about job opportunities, hiring specialists to develop software, encryption models, and microchips for “digital fiat currency.”
Two reasons
A document published on the official IMF website indicates that there are two main reasons why states are becoming involved in the development of digital currencies and blockchain technology.
Firstly, the role of cash will be weakened with the emergence of state-owned cryptocurrencies.
Second, central banks can use this financial technology to reach millions of citizens who do not yet have a bank account or access to financial services.
According to coinidol.com
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