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IMF Report Supports Use Of Cryptocurrencies By Banks

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The international monetary fund, IMF,  has released its latest report surrounding the use of cryptocurrencies in the fintech environment. It has regarded the recent development as a revolution of financial services which it emphasis should be supported by the current banking institutions too. The report supported the use of cryptocurrencies like bitcoin for many purposes such as remittance and trade as the IMF recognise the potential to revolutionize these sectors. Furthermore, the report also outlined the features which should be catered for including security and privacy of consumers which are importance when dealing with cryptocoins.

IMF Report

A International Currency

The International monetary fund also outlined the remittance applications of the bitcoin and various cryptocurrencies, as borders are being broken down as cryptocurrencies rely on the internet compared to fiat services which can be costly and relying on intermediaries and intermediates, very slow. Referring to the three main consumers of fintech, corporations, individuals and enterprises, the paper also considered the changing nature of business for large bulk payments to smaller but more frequent transactions. This was linked to cryptocurrencies as almost instant and cheap transactions can help consumers make much more efficient transactions.

The report also shows the possibilities of cryptocoins in counter terrorism and in the fight against money laundering considering the transparent nature of the blockchain and related technology. In developing countries this has become a huge problem and the IMF also believe that cryptocurrency holds the answer to fighting corruption which thrives of fiat monetary systems. The report does highlight that integrating cryptocurrencies into the banking system does represent a challenge considering banking systems have not seen a major development for most of the last 100 years. The challenges represented are few while the benefits that can be acquired are many according to the IMF.

You can read the full report on the official website here:

http://www.imf.org/en/Publications/Staff-Discussion-Notes/Issues/2017/06/16/Fintech-and-Financial-Services-Initial-Considerations-44985

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