The International Monetary Fund (IMF) has published a paper that launches a new series of work seeking to “provide insight into the intersection of technology and the global economy.”
The paper, titled, 'The Rise of Digital Money,' was authored by Tobias Adrian and Tommaso Mancini Griffoli, and seeks to examine the challenges that electronic forms of money pose to legacy financial institutions and regulators.
IMF Argues Stablecoins Are Less Risky Than Cryptocurrencies
The authors anticipate that cash and bank deposits - “the two most common forms of money” - will “face tough competition and could even be surpassed” by emerging electronic monetary commodities, such as stablecoins.
The paper asserts that stablecoins are more likely to challenge existing payment systems than traditional cryptocurrencies, arguing that speculative cryptocurrencies are “by far” riskier - with Bitcoin (BTC) producing averages daily price fluctuations approximately 10 times higher “than in most G7 currency pairs, and even a little higher than in the Venezuelan Bolivar to U.S. dollar exchange rate.” Read More at CryptoGlobe...