A new quasi-cryptocurrency called Learning Coin was launched by the International Monetary Fund and World Bank. This coin is not a legal tender of exchange but was launched so that its staff can study blockchain technology.
The Learning Coin will be restricted to the employees and does not have any monetary value.
Cryptocurrency is an online transaction currency used by new digital companies but not yet adopted by many. In Dubai for example, companies are adopting Distributed Ledger Technology to facilitate payments in a move towards the establishment of a smart city. Here in Africa, companies like Sun Exchange in South Africa pays its solar projects’ investors in Bitcoin.
Foreign firms using DLT includes Microsoft, IBM, JP Morgan, Facebook among others.
However, most companies are yet to adopt cryptocurrencies because of the risks of fraud, security breaches, and operational failures. They are also concerned about the risk of inflation because the supply is limited since there is a monopoly of supply, and there is heavy competitive pressure. There are ongoing investigations to address some of these deficiencies before the technology can be adopted.
This way, the IMF and World Bank can understand how crypto assets can be translated into real-life processes. Staff would better understand the principles of distributed ledgers of crypto assets, and how to better tackle money laundering, etc.
The IMF monitors the economies and financial systems of member countries and helps build institutional capacity and regulatory structures. In January 2016, it published a paper on digital currency called “Casting Light on Central Bank Digital Currency”.
By developing the Learning Coin, they intend to understand innovative technologies and improve regulation, supervision, and surveillance. Maybe the World Bank might be looking into adopting cryptocurrency as a legal exchange tender. Who knows?
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