When it comes to financial matters and two of the world’s most prominent organizations[ are eager to experiment with blockchain, you know that the technology is not only
The Financial Times (FT) published a story on April 12th, reporting that the International Monetary Fund (IMF) and the World Bank are teaming up to develop a private blockchain initiative and an alleged quasi-cryptocurrency (that is the term used by the two organizations.)
It isn’t a Real Token
The specialized publication stated that the digital asset, dubbed as “Learning Coin,” will only be accessible through the two organizations, namely the IMF and the World Bank. However, and since it holds no monetary value whatsoever, it cannot be viewed as a real token, as the FT explains.
The intention of the World Bank and the IMF at the moment of launching the Learning Coin was to achieve a better understanding of emerging technologies that underlie crypto assets, since they have taken over as prominent and valuable resources. The project’s associated app will serve as a platform that will be able to store blogs, videos, research, and presentations of all kinds.
At the moment of testing the initiative, the IMF and World Bank’s workers will earn coins for accomplishing specific educational goals and milestines, and the two institutions will let them redeem the earned tokens for particular prizes. That is how the Learning Coin will have real-life worth.
The IMF has emphasized the importance of learning about crypto technologies as a way to keep up with modern times, as they are developing at an accelerated rate indeed. The first bodies that have to adjust are, according to the Monetary Fund, banks and regulators across the planet.
“The development of crypto-assets and distributed ledger technology is evolving rapidly, as is the amount of information (both neutral and vested) surrounding it. This is forcing central banks, regulators and financial institutions to recognize a growing knowledge gap between the legislators, policymakers, economists and the technology,” the IMF stated.
After the test, both institutions will, purportedly, use the blockchain technology as a tool to launch smart contracts and therefore earning more tools to fight against one of the most critical threats associated with the financial landscape: money laundering. Blockchain holds the potential to increase transparency.
This month, Christine Lagarde, who is currently performing duties as the Managing Director of the IMF, stated that blockchain innovators are changing the industry and breaking paradigms when it comes to the traditional financial world, with an evident impact on all the actors and players.
The executive also highlighted that blockchain initiatives and associated assets’ potential is highly regarded by regulators and central banks. As a whole, they tend to accept that it can have a positive effect. The World Bank is a little more cautious about its approach towards blockchain, saying that high expectations exist as a consequence of excessive hype.
By: Andres Chavez