Monetary Policy In the Digital Age - The IMF View of the Crypto World

The article entitled Monetary Policy in the Digital Age was compiled by Dong He, Deputy Director of the Monetary and Capital Markets of the IMF. The original title of this article is "Monetary Policy In The Digital Era", which was compiled based on the record of the results of the IMF discussion in January 2016.

In the discussion of the IMF staff titled "Virtual Currencies and Beyond: Initial Considerations", it is as a preliminary view of the world of digital currency and its development. In 2016, the development of crypto-based digital currencies (cryptocurrencies) such as bitcoin, has been a lot of public attention, both positive and negative views.

Bitcoin, as well as other crypto-based digital assets, as if re-establishing the burst of Marvyn King. The world of cyrptocurrency is considered to later serve as an entirely alternative means of payment. Many opinions later asserted that the crypto-based digital assets may be potentially substantial in reducing the demand for central bank fiat currency issues. If that happens, then where again the role and function of monetary policy in the digital era by the central bank?

Meanwhile, minor opinions about crypto-based digital assets link some of the things that are an absolute constraint. Nothing else is so volatile the value of crypto-based currencies, and also the potential uses that are often associated with illicit activities.

On the other hand, crypto-based currencies until the emergence of crypto token, making the adoption of crypto currency increasingly unstoppable. The technology behind it looks quite realistic in its function as a transfer and storage value, especially with distributed ledger technology.

The facts are considered increasingly discredit the central bank's position should be swift to respond to the situation. Especially how the central bank must remain able to compete against the challenges that are in sight.