Major financial institutions love certainty, and that will help the crypto community immensely. Let’s get down to basics: A stablecoin is a type of digital asset designed to solve the problem of the hypervolatility of cryptocurrencies. This year is an exciting time for stablecoins as interest among financial institutions picks up speed. For example, Wisdomtree, a regulated money manager, has made plans to launch a stablecoin as an extension of its business in exchange-traded funds. IBM, State Street, JPMorgan Chase and Wells Fargo have all been exploring the opportunities provided by stablecoins. None of these institutions are prone to wild …

On May 26, Tommaso Mancini-Griffoli, a representative from the International Monetary Fund, stated that moving forward, the best way to harness the potential of central bank digital currencies would be by fostering synthetic partnerships between the private and public sectors. Further expounding his views on the matter, the deputy division chief of the IMF’s monetary capital and markets department stated that the vision behind CBDCs being completely under the control of a central bank is now an outdated one and that the entry of private players could help spur innovation. When asked about how such a partnership could even start …

In a recent trend survey made by DMEXCO and presented at an event in Cologne, Germany, it was determined that although the world is currently suffering economically, the digital economy may greatly benefit after the COVID-19 pandemic. According to the survey, the COVID-19 crisis will accelerate the rhythm of digital transformation. One of the benefits of an advancing digital transformation is that it can lead to new solutions, unlocking inconceivable possibilities. This is especially true in digital services provided by governments, as the potential for innovation within the sector is vast. With that in mind, Brazil instituted its Digital Government …

Ido Sadeh Man, founder of the global stabilized digital currency, Saga, spoke with Cointelegraph in an interview on May 15. During the interview, he said that a digital currency backed by a basket of strong fiat currencies could be used as a tool to help mitigate the effects of hyperinflation on individuals' asset value. Money printing isn’t sustainable Ido believes that the hyperinflation being induced by central banks will lead to problems down the road. He said: “It is a solution that will bring very undesirable results In the long run.” However, according to Ido, a basket of currencies would …

The global economic crisis caused by the coronavirus panic is so severe that the world’s most powerful central bank, the United States Federal Reserve, announced “QE infinity.” Bank of America Securities is estimating that the Fed could spend up to $8 trillion. While the U.S. pledged to help support stocks with infinite asset purchases, it is believed that the U.S. unemployment rate could nonetheless hit 30% for the first time since the Great Depression. The dollar’s reserve status continues to be questioned, especially as policymakers expand the money supply. The hegemony of one sovereign currency is proving to be a …

The International Monetary Fund (IMF) has published a stark prediction that the unprecedented global economic slowdown triggered by ‘the great lockdown’ will get much worse before it gets better. With Bitcoin (BTC) experiencing a record correlation with the traditional markets, the cryptocurrency needs to break away from the S&P 500 if it has any chance of producing the highly anticipated post-halving bull run. IMF drops global growth estimate by 6.3% On April 14, the IMF published its quarterly World Economic Outlook report, describing the COVID-19 induced lockdown as the worst economic downturn in 90 years and predicting a total of …

In a recent keynote speech to the London School of Economics, International Monetary Fund (IMF) Deputy Managing Director, Tao Zhang, briefed the positives and negatives of a central bank digital currency (CBDC). Zhang pointed toward greater efficiency and lower costs associated with a CBDC. “In some countries, the cost of managing cash can be very high on account of geography, and access to the payments system may not be available to the unbanked, rural, or poorer population,” he said in the Feb. 28 speech, which hit the web on March 19. Zhang hits on other positives The IMF director touched …

There appears to be increasing anxiety in cryptocurrency markets after the prices of Bitcoin (BTC) failed to maintain above the psychological $10,000 level in February. The disappointment came less than three months ahead of the highly anticipated Bitcoin halving. Although Bitcoin had performed relatively well compared to other major asset classes before massive corrections happened in March, recent macro events have long been looming in both the traditional and crypto markets. That extra layer of uncertainty seems to remain intact, at least into the near future. Related: Institutions Eye Bitcoin as Hedge Against Global Economic Volatility However, looking back in …

On March 7, three monetary and cryptocurrency experts discussed the challenges and prospects of central bank-issued digital currencies at the Massachusetts Institute of Technology (MIT) Bitcoin Expo 2020. The panelists acknowledged that distributed ledger technologies (DLT) could improve the existing global monetary system, however, argued that significant challenges persist regarding the privacy, interoperability, and scalability of blockchains. IMF official: central banks must not rush to adopt DLT Sonja Davidovic, an economist with the International Monetary Fund (IMF), warned central banks not to rush to implement blockchain systems without properly vetting the technology first. She stated: “What we've seen a lot …

India is fostering a digital future via Prime Minister Narendra Modi’s “Digital India” initiative: A national blockchain strategy that includes quantum computing, machine learning and artificial intelligence as digital technologies become the primary platform for economic activity and growth. The IMF and the World Bank have forecasted that India’s GDP will grow at the rate of 7%–8% for the next few years, driving a rapid rise in its hydrocarbon-fueled energy demand tied to growing urbanization, rising incomes and a steadily increasing population. Studies suggest that India’s share of total global primary energy demand is set to roughly double to around …

At a press conference held on Feb. 21, a representative for the National Bank of Ukraine released the results of its much-hyped central bank digital currency project called the e-hryvnia. However, the banking institution is still not certain of the impact this financial offering will have on the country’s overall financial stability as well as on its local banking market. An official statement released by the NBU clearly states that if a massive chunk of the Ukranian population were to switch to this ambitious digital currency, the nation’s banking ecosystem “may cease to be a major financial intermediary.” Furthermore, to …

Major global economists credit Facebook’s Libra with pushing the world to start reconsidering the United States dollar as anchor currency. At a Jan. 23 panel at the annual World Economic Forum (WEF) in Davos, officials and financial experts discussed one of the most important mechanisms in the global financing system — the U.S. dollar, which has become the world’s reserve currency. Libra evoked a future digital currency Called “Challenging the Dominance of the Dollar,” the panel focused on factors that make the U.S. dollar the world’s dominant payment system and reserve currency, as well as the fact that countries over …